Bitcoin options market participants are betting on the continuation of the bullish rally
The activity in the bitcoin options market suggests that its participants are counting on the continued growth of the cryptocurrency rate, which does not reach historical highs of less than 3%. Monthly implied volatility, driven by demand for put and call options, rose to 81%, the highest level since May, although it was 58% at the beginning of the month. Most of the 60% to 81% increase has occurred in the past five days. 3- and 6-month options metrics also climb to multi-month highs.
“The recent increase in perceived volatility has resulted from the purchase of a significant volume of call options,” Vishal Shah, founder of derivatives exchange Alpha5, told CoinDesk. – Investors are taking positions with the expectation of the continuation of the bull market “.
In addition, the price divergence between put and call options is near record negative values. In other words, investors are showing more demand for bullish rates than bearish ones. Last week, there was an all-time low for this indicator, but some traders bought put options when the price of bitcoin retraced from $ 18,400 to $ 17,100. Fixing bitcoin above $ 19,000 leads to the fact that the indicator began to decline again.
Blockchain-level metrics also support the continued bull rally. For example, the turnover rate of bitcoins, reflecting the number of times each coin deposited on exchanges was used to conclude transactions, rose to 7.28, the highest level since June 7. This metric confirms the continued demand for cryptocurrency, while the balances on exchange wallets continue to decline.
“We can see a significant change in Bitcoin’s price by Thanksgiving (November 26),” said Blockchain.com co-founder Peter Smith. – The new all-time high will not surprise those who considered the “not if, but when” scenario. It’s inevitable, but the world will take notice and it’s good to spread. “.
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