Bullish options data fuels speculation about new Bitcoin rally

cryptoshitcompra.com/wp-content/uploads/2021/09/-data-of-support-options-feeds-the-speculation-sobre-el.jpg »alt =» Bullish options data fuels speculation about the new Bitcoin Rally 101 ″ class = »content-img» /> Source: Adobe / xyo33

An unusually large number of bitcoin (BTC) calls to put options via bitcoin options exchanges suggests a greater bullish bias in the number one cryptocurrency among options traders.

News of unusually low call ratio was first shared by cryptocurrency market analyst firm Laevitas , who noted yesterday that the put-to-call report on cryptocurrency exchange Deribit is now “at its lowest since [the] end of December. of 2020 «.

In options trading, “call” is the term used to bet that the prices of an underlying asset will be higher in the future, while “put” is a bet on lower prices. As a result, more call options than put options mean that most traders have a positive outlook on the market and expect prices to increase.

re are more than 2 times the number of calls made in Deribit. Put / Call open rate is at its lowest level since… https://t.co/aJbhybtBqh

– Laevitas (@ laevitas1)

To confirm the Deribit picture there is also the data from all the bitcoin options exchanges compiled by the derivatives analysis company. Crooked , which showed an even lower reading. According to data from Skew, yesterday’s put-to-call ratio for open interest on all exchanges stood at 0.48, down from the low of 0.49 during bitcoin’s bull run in December last year.

Yesterday’s number increased slightly from an even lower reading of 0.47 on August 28 and 29. A call option index greater than 1 is considered an indicator of a selloff, while a call option index less than 1 is considered a buying opportunity.

png »alt =» Bullish options data fuels speculation on new Bitcoin rally 102 ″ class = »content-img» /> 1-year bitcoin open interest put-to-call ratio. Source: Skew.com

However, as history has shown, the majority in a market are not always right, and it is quite possible that most option bets will fail and instead expire worthless.

Bitcoin options exchanges currently covered by Skew include the aforementioned Deribit, also Chicago Mercantile Exchange (ECM), Bit.com , OKEx , and LedgerX , of which Deribit is by far the largest in terms of open interest. and volume.

Zhu Su, CEO of Three Capital Arrows , who casually commented “Does anyone remember what happened in December 2020?”

Three Arrows Capital is affiliated with Deribit.

However, it’s worth noting that the outlook is unclear for bitcoin, for example with cryptocurrency investment firms. CoinShares reporting yesterday that bitcoin saw mutual fund outflows for the eighth consecutive week last week, totaling $ 3.8 million. According to CoinShares, this occurred despite the fact that cryptocurrencies generally saw inflows during the same period, which the company attributes to “an improvement in sentiment in altcoin rather than bitcoin.”

png »alt =» Bullish options data fuels speculation on new Bitcoin rally 103 ″ class = »content-img» /> Source: CoinShares digital asset cash flow every week

At 12:50 UTC, bitcoin is almost unchanged for the past 24 hours, trading at $ 47,950. price has dropped 3% in the last 7 days.

stagnant price action for bitcoin has come at a time when many altcoins, and especially those tied to smart contract platforms like Solana (SOL) and Fantom (FMT), have risen, helping to reduce market dominance of bitcoin.

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