Options Traders Betting Big on Bullish October for Bitcoin (BTC), According to Analytics Firm Kaiko

New information from crypto market analytics agency Kaiko Analysis signifies that merchants are inserting massive bets that Bitcoin (BTC) could have a powerful October.

In a brand new report Kaiko finds that derivatives merchants are betting tons of of hundreds of thousands of {dollars} on the crypto choices trade Deribit that Bitcoin will regain the $70,000 vary this month.

“Choices volumes have elevated in current weeks as markets shift to a risk-oriented mindset. Merchants are positioning themselves to seize upward value actions forward of what has traditionally been BTC’s finest buying and selling month. The value of BTC has fallen in October solely twice since 2013.

Wanting on the three expirations in October, we are able to see that many of the quantity is concentrated on the BTC choices that expire on the finish of the month. Usually, the primary month contracts would have extra quantity and liquidity.”

In line with Kaiko, new macroeconomic situations are additionally contributing to merchants’ conduct.

“Nevertheless, there are a number of elements that make this 12 months totally different. First, the US central financial institution started a rate-cutting cycle this month, altering its financial coverage. The foremost rate of interest lower by the Fed has already given a lift to danger sentiment. The central financial institution introduced two extra cuts earlier than the top of the 12 months, prompting speculative trades on Dec. 27 contracts with vital quantity at strike costs above $100,000.

What just isn’t but seen within the markets is the impact of cheaper {dollars} and the eventual easing of the Fed’s quantitative tightening measures, which eliminated liquidity. International liquidity is lagging behind markets, which means it’ll take longer for the consequences of the Fed’s easing cycle to develop into obvious.”

Bitcoin is buying and selling at $61,026 on the time of writing, down 3.9% up to now 24 hours.

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