What signals does the derivatives market data reveal as Bitcoin retests 67000 support

What signals does the derivatives market data reveal as Bitcoin retests 67000 support

What signals does the derivatives market data reveal as Bitcoin retests 67000 support

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Bitcoin Derivatives Market Shows No Bearish Bets
Bitcoin Price Has Yet to Decouple from Stocks
The “Bitcoin Futures Premium Rate” typically remains between 5% and 10% in a neutral market, but when the premium exceeds 10%, it indicates a bullish market sentiment. According to a report by Cointelegraph, despite Bitcoin retesting the $67,000 support level on October 21st, the annualized premium (basis rate) remains above 9%.


The Bitcoin options market has also further strengthened the view of stability in the derivatives market. The 25% delta skew indicator shows that the trading price of selling options is lower than that of buying options under the same conditions.

Usually, a skew of -7% to +7% is considered neutral, and the current indicator is at the border between neutral and bullish markets.
Overall, derivatives traders have not shown panic over the recent price drop of Bitcoin. If traders expect further price decline, the skew should move towards zero or higher. Overall, the Bitcoin derivatives market continues to demonstrate resilience.
Yesterday’s decline appears not to be limited to the Bitcoin market, as the price trend of Bitcoin seems to resemble the intraday performance of the stock market based on the price chart.

Although Bitcoin is typically seen as an asset unrelated to traditional markets and has often exhibited complete decoupling from the S&P 500 index, the correlation between Bitcoin and the S&P 500 index in the past month has remained over 80%, indicating a close relationship between these two asset classes.
Unlike the negative or negligible correlation between Bitcoin and the S&P 500 observed from mid-July to mid-September, recent data suggests that both markets have been driven by similar factors. This hypothesis is supported by the increased correlation between Bitcoin and gold, which surpassed 80% on October 3rd.
(This article is authorized and reproduced from GT Radar)
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