Bitcoin Traders Brace for Volatile Weekend Amidst NFP Data and Rising Tensions

• BTC options expiring on Oct 5 have higher implied volatility compared to Oct 25 options.
• The higher implied volatility suggests an unusually volatile weekend ahead.
• Traders are bracing for price turbulence after Friday's NFP release and potential retaliatory strikes by Israel.
• The US NFP data is expected to show an increase of 140,000 jobs in September.
• Risks are skewed in favor of hawkish repricing of Fed rate cuts and dollar strength.
• The recent tensions between Iran and Israel have increased the risk of a full-blown war.

Summary :
Bitcoin's options expiring on October 5 are trading at higher implied volatility compared to options expiring on October 25. This suggests that traders are anticipating a particularly volatile weekend. The increased volatility is likely due to a combination of factors, including the release of the nonfarm payrolls (NFP) data on Friday and potential retaliatory strikes by Israel. The NFP data is expected to show the number of jobs added in September, and any surprises could lead to market turbulence. Additionally, tensions between Iran and Israel have escalated, with Iran firing missiles at Israel. This has increased the risk of a full-blown war and has led to a general aversion to risk. Traders are on high alert for Israel's potential retaliation, which could impact crude prices and strengthen the dollar. As a result, both traditional and crypto traders are preparing for a volatile weekend in the digital assets market.

Sources :

- Coindesk