Bitcoin – Is BTC waiting for FOMO as investors flee to safer assets?

Key Takeaways

Why is Bitcoin struggling to discover a backside?

Merchants are holding again, ready for $17 billion Bitcoin choices volatility to settle, or shares to overheat, leaving plenty of capital on the sidelines.

What’s the near-term outlook for BTC?

Bitcoin might see additional retracement and elevated volatility, particularly with macro pressures and the $17 billion choices expiry looming.

Investor urge for food is shifting, and Bitcoin [BTC] is feeling the strain.

On the macro aspect, the U.S. inventory market is ripping. All three main indices [$DJI, $NASDAQ, and $SPX] have hit contemporary all-time highs, signaling cash chasing legacy markets post-FOMC.

In the meantime, the U.S. 10-year treasury yield slipped to a quarterly low of 4.01% in mid-September, hinting that cash’s chasing safer bonds whereas risk-on bets like Bitcoin cool off. Briefly, BTC’s bid wall is weakening.

Supply: Buying and selling Economics

Regardless of the 25 bps price lower, investor conviction in BTC hasn’t returned.

In the meantime, stablecoin supply has exploded from $204 billion in January to $308 billion in September. That’s over $100 billion in dry powder nonetheless sitting on the sidelines, able to rotate into BTC as soon as risk-on flows return.

The query: When does the rotation hit?  Is the market ready on a cleaner entry, a deeper price lower, overheated shares, or the $17 billion BTC choices expiry to clear earlier than FOMO kicks again in?

Bitcoin eyes max ache forward of large choices expiry

The options market is seeing heavy exercise forward of the upcoming expiry. 

There’s a whole Open Curiosity (OI) of 152,549 contracts, reflecting sturdy participation from merchants. Of those, 86,997 are name choices whereas 65,552 are places, producing a Put/Name Ratio of 0.75, pointing to a mildly bullish bias.

The notional worth of all excellent contracts is roughly $17.04 billion, displaying important capital at stake. Notably, the max ache worth is ready at $110,000, the place Bitcoin could possibly be drawn as expiry approaches.

Supply: Deribit

Briefly, all these components clarify why Bitcoin hasn’t bottomed but.

Traders are staying sidelined, ready for a cleaner entry, choices FUD to shake out, or shares to overheat, protecting important dry powder off the market. Till certainly one of these triggers hits, BTC’s October replay appears to be like robust.

Consequently, a deeper retracement is firmly on the desk, with volatility prone to stay elevated because the market digests these macro and options-driven pressures.