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As the U.S. election and Federal Reserve meeting approach, Bitcoin options traders are focusing on call options above $80,000

As the U.S. election and Federal Reserve meeting approach, Bitcoin options traders are focusing on call options above $80,000

Bitget2024/10/21 14:08
BTC+0.03%

According to The Block, an analyst said that Bitcoin options traders are increasingly focusing on call options with strike prices over $80,000 expiring in November. Two significant events are expected to occur next month: the U.S. presidential election on November 5th local time and the Federal Open Market Committee (FOMC) interest rate decision on November 8th.

André Dragosch, European Research Director at Bitwise, stated: "Currently, the most unliquidated Bitcoin option contracts are those expiring on November 8th - coinciding with both the FOMC meeting and a few days after the U.S. election - clearly leaning towards call options. This supports the assumption that Bitcoin option traders are generally preparing for bullish outcomes." The market widely expects that the Fed will announce a reduction of federal funds rate by 25 basis points at its meeting on November 8th; currently there is a probability of 90.2% for this rate cut.

According to data from Deribit, there is quite a number of call option contracts expiring on November 29th. More than 3,100 such contracts have been opened up till end-November on Deribit with execution prices between $80,000 and $82,000; their nominal value exceeds $2.12 billion USD. In contrast, put options are fewer (1,200 contracts), with a nominal value of $82 million USD which further consolidates market's bullish stance in November. Despite positive trends in Bitcoin price towards end-November some traders continue hedging positions as recent open put contract numbers have increased.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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