Crypto market leaders bitcoin (BTC) and ether (ETH) shed their relative calm and confronted promoting stress early Tuesday as FTT, the native token of cryptocurrency alternate FTX, nosedived to 21-month lows on lingering factors relating to buying and promoting agency Alameda’s stability sheet.
At 4:30 UTC, bitcoin traded 4.three% decrease on the day at $19,seven hundred, whereas ether modified palms at $1,480, representing a 5.5% decline, CoinDesk knowledge current.
FTX’s FTT token tanked 20% to $17, the backside since February 2021, extending the previous week’s thirteen% slide.
selections knowledge confirmed renewed demand for bearish put selections tied to bitcoin and ether. The bearish shift in sentiment maybe displays investor fears that the continued FTX-Alameda drama may lead to Terra-like crypto collapse contagion.
A name various supplies the purchaser the appropriate, however not the responsibility, to buy the underlying asset at a predetermined value on or earlier than a chosen date. A put various supplies the appropriate to promote.
“we now have seen renewed demand for draw again safety after the the detrimental information stream associated to FTT,” Patrick Chu, director of institutional gross sales and buying and promoting at over-the-counter crypto derivatives tech platform Paradigm, instructed CoinDesk.
“quick dated skew significantly has moved in favor of areas as we now have seen draw again safety in each BTC & ETH with sturdy demand for finish Nov / Dec expiries,” Chu added.
each quick-time period and prolonged-time period bitcoin name-put skews, measuring prices for bullish calls relative to areas, have turned decrease from zero this week. The one-week skew has dropped from -1% to -12%, the backside since late September, in response to digital belongings knowledge supplier Amberdata.
In completely different phrases, areas are again in demand.
an analogous pattern is noticed in ether name-put skews.
The one-week ether name-put skew has dropped to almost -20%, indicating strongest bias for bearish areas since mid-September.
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