New data from the crypto market analytics firm Kaiko Research indicates traders are placing big bets that Bitcoin (BTC) will have a strong October.
Crypto market analytics firm Kaiko Research has published new data indicating that traders are making large bets on the possibility of a strong October for Bitcoin (BTC).
According to a new report by Kaiko, derivatives traders are betting hundreds of millions of dollars on crypto options exchange Deribit that Bitcoin will reach the $70,000 range again this month.
“Options volumes have increased over the last few weeks as markets shift to a risk-on mentality. Traders are preparing to take advantage of favorable price movements, especially in light of the fact that October has historically been BTC’s best trading month. Since 2013, BTC’s price has only decreased twice in October.
When examining the three expiries in October, we observe that the majority of the volume is concentrated on BTC options expiring at the month's conclusion. Typically, the front-month contracts would have greater volume and liquidity.”
Kaiko also highlights that recent macroeconomic developments are influencing the traders’ actions.
“However, several aspects distinguish this year. First, the US central bank initiated a rate-cutting cycle this month, altering its monetary policy. The massive rate cut by the Fed has already increased risk-on sentiment. The central bank has indicated two more cuts before the year's end, prompting speculative trades on December 27 contracts with substantial volume on strike prices over $100,000.
The markets have yet to feel the full impact of cheaper dollars and the eventual easing of the Fed's quantitative tightening measures, which drained liquidity. Global liquidity follows the markets, thus the effects of the Fed's easing cycle will take longer to manifest.”
Bitcoin is currently trading at $61,026, down 3.9% over the last 24 hours.
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