2023-11-22 17:04:36
The biggest crypto news of the recent period was clearly that the head and founder of Binance, Changpeng CZ Zhao, announced his resignation on November 21. Plus, he pleaded guilty to violating US anti-money laundering laws as part of a $4.3 billion plea deal. This is clearly the biggest blow to crypto markets since the collapse of the FTX crypto exchange last year. However, each of the traders sees the situation differently following what happened. Traders are still betting on a bull market The fact is that the price of bitcoin remained below the $37,000 level ( BTC PRICE ) at the time of writing this article. According to data from the Paradigm trading network, activity in bitcoin call options increased following the announcement, a sign of a strong bull market. Data from other market analysts, such as Chang, shows that on Nov. 22, for example, 550 contracts were traded on Deribit’s $45,000 BTC call option expiring in March 2024. The buyers are clearly expecting a price jump and therefore paid a premium of 1.5 million dollars in total for their “waiting”. On Deribit, one option contract represents one BTC. These are call options where the seller and buyer agree to buy a certain asset at a specified price on or before a specified date. You don’t have to be a very big trader to see that this is a strong bull market message. Overall, both short and long calls continue to trade at a premium to put options. This is a sign that the market is not expecting a major change following the Binance news and crypto fears have disappeared. The main reason for this is that there is quite a strong consensus that the US authorities have now gutted the market to prepare for the arrival of the first publicly traded US bitcoin spot ETF. The latter might bring additional billions to the market in the form of investor money in a much more regulated framework.
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