The BTC Options Market Is Suggesting a Bias for $100K Calls Despite the Weakness in Bitcoin Price
One trading business claims that the demand for BTC calls around $100K indicates that traders are getting ready for a fresh rise into 2025.
Even while the price of bitcoin is falling, the options market is biassed towards calls. One trading business claims that the demand for calls at $100K indicates that traders are getting ready for a fresh rise until 2025.
Traders of cryptocurrency options are deliberately hedging against the current downward trend in the price of bitcoin (BTC).
According to CoinDesk data, the top cryptocurrency by market value has dropped more than 1% in the last day to $64,500, continuing its slump from previous highs above $72,000.
Despite this, there is still a bias in the Bitcoin options flow published on the main Deribit exchange towards call options at levels (strike prices) that are much higher than the cryptocurrency’s current market rate. This could be an indication that astute investors believe the current price slump will pave the way for a longer-term rally.
We have seen an abnormally large buying flow of Dec and Mar [expiry] $90-$100K calls in the options market over the past 24 hours. According to Singapore-based QCP Capital said in a market update, “We think this indicates the market is calling the bottom and setting up for a sustained rally, which could extend into 2025.”
The buyer of a call option has the opportunity, but not the duty, to purchase Bitcoin, the underlying asset, at a fixed price at a later time. Implicitly enthusiastic about the market, a call buyer is.
The most popular bitcoin options on Deribit throughout the previous 24 hours are displayed in the chart. The June expiry calls at $65,000, $68,000, and $70,000, the July expiry call at $110,000, and the December expiry call at $95,000 have seen the most action.
The call-put skew, which shows how much traders are ready to pay to obtain an asymmetric payout in either an upward or downward direction, more clearly illustrates the divergence between the emotion of the options market and the price of bitcoin.
The one-, two-, three-, and six-month skews, according to Amberdata, have all remained positive during the most recent decline in the price of bitcoin, indicating a bias towards calls or an increase. Solely the seven-day skew has turned negative, indicating a need for protection against downward moves.
Recent weeks have seen a decoupling of Bitcoin from the Nasdaq’s ascent, primarily as a result of miners and long-term holders selling their holdings and increasing discourse on the non-directional nature of ETF inflows. The governance of German transferred $425 million of BTC to other cryptocurrency, possibly with the intention of selling it.
Cryptocurrency Assets Rise, With BTC Back at $66K
The most recent changes in cryptocurrency prices
The European morning saw a surge in cryptocurrency assets, with ether rising 2% to $3,600 and bitcoin rising 1.5% to $66,300 during the course of the day. The CoinDesk 20 Index, which calculates the gross presentation of the digital asset market, has rise about 1%. Avalanche’s AVAX has gained the most, coming in at just under 3.9%. Solana’s SOL increased by 1.3%, whereas XRP increased by 1.5%. SOL, the altcoin market’s closest competitor to ether, could be losing ground as investors wait for spot ETH ETFs to list in the US, which is expected to happen within the next two months.
On the Australian Securities Exchange (ASX), trading for the VanEck Bitcoin ETF (VBTC) began. The largest stock exchange in the nation, the ASX, has listed its first exchange-traded fund. After trading 99,791 shares, VBTC increased 1% from its opening price to close the day at A$20.06 ($13.4). The Exchange Traded Funds is a manger fund that invests in the company’s U.S. Exchange Traded Funds, HODL, which is recorded on Cboe, and provides investors exposure to BTC. Monochrome Asset Management’s IBTC, the first Australian spot bitcoin ETF, made its debut on Cboe Australia, a smaller rival to ASX, at the beginning of this month.
In the past day, tokens allegedly utilising AI technology have increased by up to 35%. The leaders in this advancement were FET from Fetch.ai, AGIX from SingularityNET, and OCEAN from Ocean Protocol; overall, the sector added 15%. The expansion coincided with rises in the shares of chipmaker Nvidia (NVDA), which has increased 5% since Monday, ranking it as the world’s most valuable corporation. It’s not surprising that AI tokens are rising in response to Nvidia emerging as the most valuable company in the world.
At 1.802 million BTC, the quantity of bitcoin kept in wallets connected to miners is at its lowest point since April 2019.
One reason preventing bitcoin from matching Nasdaq’s pace is faster selling by miners.
