Fear of Bitcoin’s shortcomings BTC$116,425.80 According to the latest options market data, ether (ETH) has been significantly eased. However, the pace of the next upward movement of these cryptocurrencies will depend heavily on the magnitude of the Fed rate reduction expected on September 17th.
According to data source Amberdata, BTC’s 7-day call/Put Skew measures that if it expires in one week, if it expires in one week, if it expires in one week, then it expires in one week.
The 30- and 60-day optional skew still slightly negatively, but recovered from last week’s lows, indicating a significant mitigation mitigation. Ether’s optional skew exhibits a similar pattern at the time of writing.
Skew indicates bias in market direction, or the extent to which traders are more concerned about rising or rising prices. Positive skew suggests bias for call or bullish options to be played, while negative readings indicate relatively high demand for put options or downside protection.
The option reset is widely expected to lay the foundation for additional easing over the coming months as Bitcoin and ether prices see an updated rise towards Wednesday’s Fed rate decision. According to Coindesk data, BTC has surpassed $116,000 over seven days, exceeding $116,000 over seven days, with Ether having increased nearly 8% to $4,650.
What happens next will depend heavily on the size of the imminent Fed rate reduction. According to CME’s Fed Funds Futures, traders have priced at 90% or more, with a central bank reducing it to 4%-4.25% at 25 basis points (BPS). However, there is also a slight chance that the Jumbo 50 bps will move.
The BTC could be ferocious in case the Fed offers a surprising 50 bps move.
“The surprising 50 bps rate cut is a massive gamma purchase signal for ETH, SOL and BTC,” said Greg Magadini, director of derivation at Amberdata, in an email. “Gold will definitely become nuts too.”
Note that SOL options on the Delivery Bit list already show strong bullish sentiment, and that Call is trading at PUTS’ 4-5 Volatility Premium.
Magadini explained that if the decision meets expectations of a 25 bps cut, then BTC’s “Grind High” is likely to see a good “Grind High” look. Meanwhile, ETH has retested its all-time highs, and it could take another week or so for a compelling deal above $5,000.