Bitcoin and Euro Options Show Bullish Trends Against Dollar Amid Market Decline
Options linked to bitcoin and the euro-dollar exchange rate show strength against the U.S. dollar amidst a decline in the U.S. stock market.
- Short- and near-dated risk reversals for bitcoin indicate a bullish bias as demand for call options increases.
- One-month EUR/USD risk reversal has turned positive, signaling a favorable outlook for EUR call options.
- The preference for BTC and EUR call options reflects expectations of capital moving away from U.S. assets into bitcoin and the euro.
- The Dow Jones Industrial Average dropped over 700 points, marking a month-to-date decline exceeding 9%.
- The dollar index fell to a three-year low of 98, down 10% in the last three months.
- The 30-year Treasury yield rose to 4.90%, reflecting a sell-off in U.S. assets.
- Policy uncertainty is increasing due to trade tensions and potential changes in Federal Reserve leadership.
- BTC surpassed $88,000; EUR/USD reached 1.1575; gold prices hit new highs at $3,495 per ounce.
Investor sentiment is shifting significantly, prompting discussions on strategic asset allocation.