Key Bitcoin options ‘fear’ indicator reflects traders’ regulatory concerns By Cointelegraph

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Key Bitcoin options ‘fear’ indicator reflects traders’ regulatory concerns

After 46 consecutive days of trading above $42,000, (BTC) price started to show weakness on Sept. 21. Over the last three days, the 13% accumulated loss was enough to erase the hard-earned gains added since Aug. 6. Historicals also show that the previous bearish cycle took 79 days to regain the all-important $42,000 level.

Traders’ attention turned to the start of the U.S. Federal Reserve’s monetary meeting, where the financial authority is expected to indicate whether it will curtail the $120 billion monthly asset repurchase stimulus program. Curiously, as all this takes place, China’s equity markets, as measured by the iShares MSCI China ETF ($MCHI), rebounded 1% on Sept. 21.

Bitcoin price in USD at Coinbase (NASDAQ:). Source: TradingView
Deribit Bitcoin options 25% delta skew. Source: Laevitas
Bitcoin 8-hour margin futures funding rate. Source: Bybt