According to Kaiko Research cryptocurrency market analysis data, investors 
$61,635He takes serious positions that (BTC) will show a strong performance in October. BTC price is at $60,800 at the time of writing and gained $800 shortly after testing the $60,000 support.
Volume Increases in Bitcoin Options
According to the new report published by Kaiko, traders in the derivatives market are taking positions with the expectation that Bitcoin will regain $ 70,000 this month. How do we understand this? Of course, from options market Deribit data. Motivated by the historical bullish performance for the last quarter, investors are taking positions as Deribit trading volume has recovered significantly.
Kaiko notes that new macroeconomic conditions also affect traders’ behavior. The US central bank’s start to cut interest rates in September created an appetite for risk taking in the markets.
“Entering the interest rate cut cycle increased the tendency to take risks. The central bank signaled that it would make two reductions by the end of the year. This led to high volumes of speculative transactions in December futures.”
Kaiko notes that October has historically been the best profitable month for Bitcoin, and that this month has resulted in a price decline only twice in history.
Focusing on three different expiration dates that will occur in October, the report states that the majority of transactions are directed towards BTC options that will expire at the end of the month. It is noteworthy that these contracts have more volume and liquidity.
Impact of FED’s Policies
Kaiko adds that the effects of the US central bank’s interest rate cut cycle, as well as the easing of quantitative tightening policies that provide liquidity in a difficult environment, have not yet been seen in the markets. As a matter of fact, the Fed has not yet taken comprehensive steps on this issue. For now, Powell is cautious about expanding the balance sheet and holds a trump card against the risk of possible recession.
Experts are hopeful about the coming months, stating that global liquidity reacts with a delay from the markets and that the effects of the FED’s easing cycle will emerge in a longer period of time. On the other hand, we will see the effects of China’s monetary easing on risk markets more clearly over time.
Conclusion
Investors’ expectations that Bitcoin will perform strongly in October are supported by both increased volume in the options market and macroeconomic factors. Considering the effects of current market conditions and the FED’s future policies can be important for medium-term strategies.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
