Since then, four months have passed, but traders seem somewhat optimistic that inflation has hit the necessary threshold to trigger cryptocurrency adoption.
Federal Reserve FOMC meeting is expected to rule on the interest rates on May 4, but more importantly, the FED is expected to announce a program to offload part of its $9 trillion balance sheet.
Similarly, as measured by the MSCI China index, the Chinese stock market is currently facing a 20% correction year-to-date.
There is no way to know what will trigger a Bitcoin bull run, but a report by Glassnode on April 18 has detected “a large amount of coin supply” accumulating between $38,000 and $45,000.
Following the whales and large investors usually pays off, but most traders are looking for ways to maximize gains while also limiting losses.
On the other hand, the put option provides its buyer the privilege to sell an asset at a fixed price in the future — a downside protection strategy.
To initiate the trade, the investor needs to short 1 contract of the $44,000 call option and another 1.4 contracts of the $44,000 put option.
To protect from an eventual downside, one should buy 3.46 contracts of the $38,000 put option.
This strategy yields a net gain if Bitcoin trades between $40,500, 4% above the current $38,900 price, and $60,500 on July 29.