Seeking Alpha Interview: Deribit’s Sidrah Fariq on Bitcoin, stablecoins

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Bitcoin (BTC-USD [https://seekingalpha.com/symbol/BTC-USD]) looked to be range-bound between $105K and $125K and is in search of a new narrative to take it higher, according to Sidrah Fariq, Global Head of Retail at crypto exchange platform Deribit.

"$110k and $100k are key price levels to watch out for. A break below would take us further down, but if the support levels hold, we could see a relief rally in October," Fariq told Seeking Alpha.

The fourth quarter is typically a strong quarter for crypto. Fariq believes there are some positive drivers, which include rising global liquidity, a global rate-cutting cycle, a weak dollar, growing institutional demand, and a favorable regulatory landscape under the Trump administration.

"The bull market could accelerate in Q4 amid a supportive macro backdrop and added momentum by the Trump administration as they juice markets ahead of November elections," she added.

Fariq noted Deribit’s December 2025 options expiry has drawn more than $11B in open interest, with the largest concentrations at the $140K and $200K strikes. "The Put/Call ratio is at 0.44, signaling stronger demand for bullish bets," she said.

Fariq said Bitcoin’s (BTC-USD [https://seekingalpha.com/symbol/BTC-USD]) resilience during Liberation Day volatility underscored its role as a non-sovereign, borderless hedge. "It also forced questions around the sustainability of the US dollar while Bitcoin connected to its fundamental qualities of 'safe haven' and 'digital gold,'" she said.

She also warned about some near-term headwinds, which include a potential funding squeeze as markets digest treasury supply and the U.S. funds a spiraling debt deficit.

"Concerns over debt sustainability from both the U.S. and Japan loom, and an increase in rates by the BoJ could spook bond markets. As bond yields rise, risk-off sentiment could put short-term pressure on Bitcoin prices," Fariq said.

In terms of stablecoins, Fariq noted that regulators remained cautious about money laundering and misuse of them, as they can move across borders very quickly, making it hard to freeze suspicious flows.

In recent times, the European Union's financial regulator asked for immediate safeguards on stablecoins partly issued in the bloc, according to media reports.

The ECB had also warned that multi-jurisdiction issuance of Circle’s USD Coin (USDC-USD [https://seekingalpha.com/symbol/USDC-USD]) and Paxos USDG could trigger cross-border liquidity risks.

"Regulators also want more transparency from issuers on whether stablecoins are fully backed by liquid reserves. Proper audits and reliable disclosures remain a major challenge," Fariq said.

SOME CRYPTO-RELATED EXCHANGE-TRADED FUNDS OF INTEREST: (IBIT [https://seekingalpha.com/symbol/IBIT]), (ARKB [https://seekingalpha.com/symbol/ARKB]), (GBTC [https://seekingalpha.com/symbol/GBTC]), (BRRR [https://seekingalpha.com/symbol/BRRR]), (BTCO [https://seekingalpha.com/symbol/BTCO]), (HODL [https://seekingalpha.com/symbol/HODL]), (BTCW [https://seekingalpha.com/symbol/BTCW]), (FBTC [https://seekingalpha.com/symbol/FBTC]), (BITB [https://seekingalpha.com/symbol/BITB]), (EZBC [https://seekingalpha.com/symbol/EZBC]), (BITQ [https://seekingalpha.com/symbol/BITQ]), (DAPP [https://seekingalpha.com/symbol/DAPP]), (BKCH [https://seekingalpha.com/symbol/BKCH]), (BLOK [https://seekingalpha.com/symbol/BLOK]), (CRPT [https://seekingalpha.com/symbol/CRPT]), and (IBLC [https://seekingalpha.com/symbol/IBLC]).

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