Bitcoin Dealers continue to look downward volatility and uncover their bullish exposure despite the recent positive signals, such as Federal Reserve’s Interest section, to Crypto Derivatives Exchange Deribits CEO Luuk Strijers told Coindesk.
Earlier this week, the US Fed Rent reduced by 25 basic points and signaled an additional 50 basic points with relief expected at the end of the year. Securities and Exchange Commission (SEK) revealed a new generic listing standard for crypto -Tfs set to speed up the approval process.
Meanwhile, Deribit’s DVOL index, which measures the 30-day implicit volatility, remains muted by approx. 24%, the lowest in two years.
Historically, Bullish atmosphere is strong in such situations that cause call options – betting on price increases in BTC – to become more expensive than putting options that provide insurance against price declines. However, the settings continue to trade with a prize on all time frames.
“Leaning across all time frames remains flat to negative,” Strijers explained. “We continue to see the demand for uncovering exposure to downward downward, while overwriting streams overwrite the exceeding.” Deribit is the world’s largest crypto option exchange, which accounts for over 80% of global activity.
Options skew measures the implicit volatility difference between calls and set settings for a given outlet. A negative crooked indicates Bearish atmosphere, where investors expect a price drop; A positive skew reflects bullish expectations.
Currently, they are seven, 30, 60 and 90 days crooked a little negative, with the 180 -day crooked neutral, according to the data source Amberdata.
This indicates sustained concern over a possible BTC correction.
Investors buying puts may be concerned that Fed’s easing had already been taken into the market prior to the decision and that a worsening financial prospect could reduce the demand for more risky assets, such as Bitcoin.
“After Fed’s decision, some of the previous optimism has faded. The market now seems to be waiting for the next catalyst-what is either macro or cryptospecicic to break the stalemate and push option positioning out of its current balance between caution and optimism,” Strijers said.
Sidrah Fariq, Global Head of Retail Sales and Business Development at Deribit, said the sustained Put -Bias represents the maturity of the market.
“In some sense, BTC settings behave more like S&P index settings -a sign of maturity, but also on the care of the market,” Fariq said.
In addition, dealers covered, covering calls-to-selling call options against their spot stocks to collect prize-what can contribute to Put bias, especially in longer dating options. This strategy generates additional income but can hood upward potential.
Tire calls have emerged as a popular strategy among BTC, ETH and XRP dealers in recent years.
