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 trade FTX, nosedived to 21-month lows on lingering considerations relating to buying and selling agency Alameda’s stability sheet.
At 4:30 UTC, bitcoin traded 4.3% decrease on the day at $19,700, whereas ether modified arms at $1,480, representing a 5.5% decline, CoinDesk information present.
FTX’s FTT token tanked 20% to $17, the bottom since February 2021, extending the previous week’s 13% slide.
Choices information confirmed renewed demand for bearish put choices tied to bitcoin and ether. The bearish shift in sentiment maybe displays investor fears that the continued FTX-Alameda drama could result in Terra-like crypto collapse contagion.
A name possibility offers the purchaser the fitting, however not the duty, to purchase the underlying asset at a predetermined worth on or earlier than a selected date. A put possibility offers the fitting to promote.
“We’ve seen renewed demand for draw back safety after the the unfavorable information circulation associated to FTT,” Patrick Chu, director of institutional gross sales and buying and selling at over-the-counter crypto derivatives tech platform Paradigm, informed CoinDesk.
“Brief dated skew specifically has moved in favor of places as we have now seen draw back safety in each BTC & ETH with sturdy demand for finish Nov / Dec expiries,” Chu added.
Each short-term and long-term bitcoin call-put skews, measuring costs for bullish calls relative to places, have turned decrease from zero this week. The one-week skew has dropped from -1% to -12%, the bottom since late September, in line with digital property information supplier Amberdata.
In different phrases, places are again in demand.
An analogous sample is noticed in ether call-put skews.
The one-week ether call-put skew has dropped to just about -20%, indicating strongest bias for bearish places since mid-September.
