Following Federal Reserve Chair Jerome Powell’s speech, which hinted at a potential interest rate cut cycle, Deribit witnessed significant bullish activity in its block trades, particularly for Bitcoin and Ethereum options.
In one notable Bitcoin trade, a user purchased call options with a strike price of $80,000 expiring at the end of the year, while simultaneously selling call options with a strike price of $120,000, also expiring at the end of the year. The trade, involving 525 BTC and a premium of $1.844 million, reflects a bullish outlook using a bull spread strategy to reduce leverage and capitalize on potential price increases.
Ethereum also saw bullish activity, with a user purchasing call options with a strike price of $2,600 and selling call options with a strike price of $3,600, both expiring at the end of the year. This trade involved 12,750 ETH and generated a premium of $3.712 million, further highlighting the optimistic market sentiment.
Deribit officials attributed this surge in bullish options trades to Powell’s speech, which seemingly confirmed the start of an interest rate cut cycle.
