Bitcoin Options Data Signals Potential Rebound Ahead Of US Unemployment Data

The Bitcoin BTC/USD price dip has raised concerns among some investors, but analysis of options data suggests reasons to be optimistic.

What Happened: Despite the recent price dip, options data reveals a decline in market volatility expectations.

This is evident in the Bitcoin implied volatility (Dvol) falling below 70%, according to data from options trading terminal Greeks Live.

This trend aligns with observations made at the end of last month, suggesting a decrease in volatility pressure.

Moreover, Friday’s release of U.S. unemployment data for March is a key macroeconomic event. Strong economic data could decrease the Federal Reserve’s likelihood of implementing a rate cut in May, as per Greeks Live.

The market’s expectation of a May rate cut has already dropped from 90% last month to 50% currently.

This shift in Fed policy expectations could impact Bitcoin’s price trajectory.

While recent block trades have shown weakness, with whales primarily purchasing call options (bullish bets) after the Bitcoin halving, it’s important to monitor their next moves.

Whales, major cryptocurrency holders, can significantly influence market direction based on their trading activity.

Also Read: SEC Director Grewal: A Decade’s Worth Of Crypto Arguments Defeated In Court, Now Let’s Protect Investors

Why It Matters: The combined factors of potentially less hawkish Fed policy due to strong economic data, falling volatility expectations, and whales accumulating call options suggest a potential rebound for Bitcoin.

However, the market remains dynamic, and close attention should be paid to tomorrow’s unemployment data and any future actions by major holders.

With ongoing market fluctuations and evolving economic conditions, accurately predicting Bitcoin’s future trajectory can be challenging.

Benzinga’s upcoming Future of Digital Assets conference on Nov. 19 promises to be a valuable platform for in-depth discussions on Bitcoin’s price drivers, market psychology, and potential regulatory changes.

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