Experts predicted a decrease in demand for bitcoin-puts ahead of the US inflation report. The publication of the document could strengthen the case for a faster withdrawal of liquidity by the Federal Reserve System (FRS).
According to Skew, a crypto derivatives market research firm, the parameter that measures the value of put bets in relation to calls has plummeted from 17% to 0%.
According to Patrick Chu, director of institutional sales and trading at Paradigm technology platform, 2022 began with a decline in open interest in options, but now the situation has changed. The positive flows indicate that sophisticated investors do not expect Bitcoin to be hit by the publication of the Consumer Price Index (CPI).
Many experts believe that the increase in inflation in the United States has already had an extreme negative impact on bitcoin, which led to a drop in the value of the cryptocurrency by almost 40% in 2 months. Therefore, fresh data will not provoke another collapse.
In particular, trader and analyst Alex Kruger said that there has been too much talk lately about the CPI and the Bitcoin exchange rate. However, only a sharp and significant rise in prices for goods and services can lead to another collapse in the cryptocurrency market.
A put option is a standard exchange-traded contract whereby the buyer of a security gets the right (but not the obligation) to sell a certain amount of the underlying asset to the seller at a fixed price during the term of the agreement.
A call option grants the buyer a security the right to purchase a certain amount of the underlying asset in the future.
At 16:58 (Moscow time) on January 12, the Bitcoin exchange rate was $ 43,840, which is 5.22% higher than the previous day. At the same time, the trading volume per day decreased by 11.11%, to $ 29.4 billion.
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