The CFTC’s latest move against Binance seems to have had little impact on the Bitcoin options and futures markets, but does that call for a positive or negative indication? After having been legally prosecuted by the U.S. Trading Commission, Binance, and its CEO CZ (Changpeng Zhao) of Bitcoin tickers prices dropped down by 3.6% to approximately $26,900.
The Silicon Valley bank’s successful opportunistic earnings secured an unprecedented cash chain from the insurance company to cover any future losses that may have prevented a worse drop in the price of bitcoin. Once a U.S. Federal Court decided to provisionally freeze the planned purchase of Voyager Digital to Binance.US on the 27th of March, there was further unrest in the cryptocurrency sector. Let’s look at stats for Bitcoin futures to see where experienced traders are right now in the market.
The CFTC-Binance Lawsuit Had Little Effect On Bitcoin Futures Prices
Whales and trading desks like to trade in Bitcoin quarterly futures, which often make business at a tiny discount to marketplaces, signaling that vendors are demanding a higher price to postpone resolution for a relatively long run. A lack of urge for leveraged long positions does not always indicate a price decrease. Because of this, investors should research the options markets to understand how market makers and whales assess the possibility of price changes shortly.
Bitcoin Market Participants Continue To Be Rather Upbeat
When the participants in the market desks overcharge for protection, the 25% skew delta is a telltale indication. Options traders increase their likelihood of a price drop during bad markets, pushing the indicator beyond 8%. The demand for bearish put options decreases in bullish markets, where the metric of the skew is typically below -8%.