Market Wrap: Bitcoin Has Light Response to OKEx While Ether Options Traders Make Beacon Bets

Saturday 17 October 2020, 6:40 AM AEST - 6 days ago

coindeskbipoct16CoinDesk 20 Bitcoin Price Index

Bitcoin rebounded from an OKEx-related drop; ether options traders may be beacon chain bearish.

btcoct16Bitcoin trading on Bitstamp since Oct. 14.

Bitcoins price moved as high as $11,623 late Thursday/early Friday but trades at that height were short-lived. Spot traders punched the sell button around 04:00 UTC (12:00 a.m ET) on the news that Malta-based exchange OKEx suspended withdrawals due to an investigation of a key operations person. Bitcoin fell as low as $11,199 on spot exchanges such as Bitstamp before rebounding a bit, up to $11,327 at press time.

Market analysts seem unfazed, saying OKExs situation will hardly affect cryptos long-term fundamentals. Nonetheless, the circumstances seem a bit curious, according to George Clayton, managing partner of investment firm Cryptanalysis Capital.

Kind of weird that a major exchange can be incapacitated by one guy, Clayton told CoinDesk. One would have thought that there would be contingency plans in place with that much at stake.

William Purdy, an options trader and founder of analysis firm PurdyAlerts, noted the resilience of the market in the face of negative sentiment. If this news occured in 2018, the market would have dropped 10%-15%, he told CoinDesk. However, now it is supported by the larger equity investors and traditional markets.

Indeed, despite the drop, the price per one bitcoin is still hovering around the $11,400-$11,500 range it has been in since Oct. 9.

btcinoctoberSpot bitcoin trading on Bitstamp in October.

Yet, in the bitcoin options market, traders appear to be preparing for further fallout. Open interest in bitcoin options keeps trending upward, according to Purdy.

skew_total_btc_options_open_interest-16Open interest on major bitcoin options venues the past month.

Specifically, Purdy sees a trend with an increase in the put/call ratio on bitcoin options. High put/cal ...

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