Last week, crypto asset (virtual currency) derivatives exchange Deribit received a buy order for 50,000 Ethereum (ETH) options with a June maturity and a strike price of $400, sounding a warning to the crypto asset community. . Ethereum is around $1,300 at the time of writing, and the trade could be profitable if the price drops 69% within six months.
A put option gives the purchaser the right (but not the obligation) to sell the underlying asset at a specified price on or before a specified date. Buying puts shows that the market is bearish.
As of the morning of the 9th, more than 40,000 orders have been placed. According to Deribit, put buyers will pay a premium of 0.0095 ETH per contract for a total spend of 380 ETH (about $494,000, or about ¥65 million).
The order could be a bear market bet, with the goal of profiting from price declines. Or it could be a hedge against bullish investments in Ethereum and other altcoins.
Bitcoin (BTC): Up 1.5% in 24 hours, near $17,200. Bitcoin’s modest rally on Monday led to gains in shares of crypto-related companies, including trading giant Coinbase and mining firm Marathon Digital.
Ethereum (ETH): Up 3.8% in 24 hours, near $1320. On the 9th, it was almost an upward trend throughout the day.
Solana (SOL): Up more than 18% in 24 hours, near $16. It broke the $14 resistance over the weekend, reaching its highest level since November. Daily active users on the Solana blockchain have increased by more than 40% over the past two weeks, according to data site Artemis.
Cardano (ADA):It briefly rose more than 20% and traded as high as 34 cents before settling to a 6% gain on Thursday afternoon. Dapps (decentralized apps) on the Cardano blockchain saw a surge of activity over the weekend, according to on-chain data.
● CoinDesk Market Index (CMI): 839.85, +2.8%
Bitcoin: $17,175, +1.3%
Ethereum: $1319, +3.8%
● S&P500: 3,892.09, -0.1%
Gold: $1,876, +0.6%
10-Year US Treasury Yield: 3.52%, -0.1
A survey released by the New York Fed on Monday showed U.S. consumers’ inflation expectations one year ahead fell to 5%, the lowest since July 2021. Falling inflation expectations are a welcome sign for those who are long in any of the crypto assets.
The 5% figure is pretty much in line with top Fed expectations for 2023 interest rate levels.
Reducing the difference between the inflation rate and the interest rate level is important in curbing inflation. By the way, the inflation rate in March 2022 was 8.5%, and the policy interest rate at that time was 0.25% to 0.50%.
For Bitcoin and Ethereum, the narrower the gap between inflation and policy rates, the more likely it is that monetary tightening will be lifted, which could lead to higher prices.
Bitcoin and Ethereum are up 0.39% and 0.74% respectively after the release of the New York Fed survey data. Both were already rising before the announcement, but their gains accelerated after the announcement.
｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
｜Original: Crypto Markets Today: Big Options Trade in Ether Market Would Profit from 69% Price Slide
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