Welcome to US Crypto News Morning Briefing. An essential summary of the most important developments in future cryptography.
Looking back at the final expiration date for Bitcoin (BTC) traders get their coffee and look forward to many of the calls they’ve made, a month often marked at rallies over the past few years. Interest arises as optional positioning and facility flows can determine whether momentum will break or stall.
The day’s crypto news: Traders bet on higher prices in October
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Crypto traders are talking about Uptober, the nickname given in October for the history of the powerful Bitcoin rally.
However, before the month begins, the options market is sending mixed signals as it will be placing a big bet on a higher price after the record expires, potentially a sudden breakout if the contract expires.
As reported by Beincrypto, the $16 billion Bitcoin options contract is now effective today on Deribit, one of the largest expiration dates to date.
Crypto options are financial contracts that allow traders to bet on the future price of Bitcoin without buying or selling it directly.
When so many contracts expire at once, they can temporarily trap the price of Bitcoin, at the most popular betting level (in this case between $115,000 and $120,000). Traders call this effect “pinning,” and it often keeps volatility down until it expires.
However, once the contract settles, the pin will disappear. Depending on whether more traders are betting upside down, the market can see sharp movements the next day.
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This is how bitcoin traders are positioning for up-two
Bitfinex analysts told Beincrypto that many traders are loading their call options, especially in the $115,000 to $125,000 range.
These bets suggest confidence that if Bitcoin rises, Pioneer’s crypto could gather deeper into the Upbar.
However, there is a warning. Market makers and dealers who sell these contracts hedge risk through trading with the market. This tug of war often slows down major movements until the expiration date clears the slate.
Nansen’s research analyst Nikolai Sondergaard said the agency is also preparing for the upside.
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“Retailers are making balanced, short-term bets, but institutions are bullish with structured transactions that benefited in the event of Bitcoin rising,” Sondergaard said in a statement to beincrypto.
He pointed out the ratio of puts of 0.65. This means there are significantly more bullish bets than bearish bets.
September is responsive to its reputation as a choppy month in codes. However, as October approaches, the stage is set to return to volatility.
Important signals to monitor in the coming days include ETF flows, permanent funding rates, and whether options’ locations will be reset at a higher level.
The chart of the day
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Byte-sized alpha
Here’s a summary of more US crypto news that continues today:
