Summary
- It reported that a positive outlook on the preliminary trade agreement between the United States and China is raising expectations for Bitcoin's rise.
- It said that on Deribit’s Bitcoin options market, the put option volatility premium shrank after the sharp drop, alleviating investors' concerns about declines.
- It added that Bitcoin prices rebounded after the early October plunge and are currently trading at around $114,000.
A preliminary trade agreement between the U.S. and China could drive Bitcoin (BTC) higher.
On the 28th (local time), CoinDesk reported, "As consensus forms in a preliminary trade agreement between the United States and China, Bitcoin may enter a new bullish phase."
U.S. President Donald Trump and Chinese President Xi Jinping are scheduled to meet in Korea this week. After China tightened export controls on rare earths, President Trump warned he would impose 100% tariffs on Chinese-made products from the 1st of next month, but recently he has expressed optimism, saying "the two countries will reach an agreement."
In the Bitcoin options market on the virtual asset (cryptocurrency) derivatives exchange Deribit, the volatility premium on put options (used to guard against declines) recently shrank from about 5% to 2~3% immediately after the sharp drop on October 10. This indicates that investors' concerns about a decline have eased.
In early October, Bitcoin plunged from $126,000 to around $105,000, but it has since rebounded and is currently trading at about $114,000.
Uk Jin
wook9629@bloomingbit.ioH3LLO, World! I am Uk Jin.
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