In a surprising development, the options linked to Bitcoin (BTC) and the Euro-Dollar exchange rate (EUR/USD) are indicating strength against the US dollar despite a recession in the United States stock market. This trend suggests that the trade of “selling America” is gathering rhythm.
Currently, short and almost dated risk reversions of Bitcoin, which measure the demand for purchase options in relation to sales options, were slightly positive, indicating a bullish bias. The data, extracted from sources such as Deribit and Amberdata, indicate a recovery of the previous trend where there was a constant preference for almost dated options.
At the same time, the reversal of EUR/USD risks of one month has also become positive, demonstrating a favorable perspective for the purchase options of EUR, according to the data tracked by Jens Nordvig, founder and CEO of former Data Inc.
A purchase option gives the buyer the asymmetric rise exposure to the underlying asset, while a sales option protects against price decrease. Consequently, a call buyer is implicitly optimistic, while a buyer Put is bassist, who seeks to protect or obtain profits from early price falls.
The preference for the purchase options of BTC and EUR on the dollar indicates expectations for continuous capital rotation away from US assets., Which have recently fallen out of favor with investors, and in Bitcoin, the euro and other assets such as gold. .
On Monday, the Dow Jones Industrial Avenge collapsed more than 700 points, which led its monthly decrease to more than 9%. Together, the dollar index, reflecting the yield of the Greenback against the main fiduciary currencies, including the euro, Fell to a minimum of three years of 98, 10% less in the last three months. In addition, the larger duration prices of the treasure notes have decreased, resulting in the increase in performance to 30 years in more than five basic points to 4.90%.
The concurrent sale in the US assets.
“We are in a change of allocation of strategic assets that is causing all kinds of correlations to turn historically. It is a time for many investors to step back and think fresh,” Nordvig said in X.
On Monday, BTC increased more than $ 88,000, with the EUR/USD, rising to 1,1575, the highest since November 2021. Gold exceeded the price mark of $ 3,400 per ounce for the first time and rose to a new maximum of $ 3,495 at the time of publication.
