Bitcoin Options Demand Surges
Professional traders are flocking back to Bitcoin funds as leading asset managers apply for exchange-traded funds. This has resulted in a significant increase in open interest (OI) for Bitcoin options contracts, reaching $13.8 billion according to Glassnode. The surge in demand for these options indicates that market investors are seeking risk-defined derivative instruments.
Key Points:
– Open interest for Bitcoin options contracts has reached $13.8 billion, close to its all-time high of $15.1 billion.
– Options contracts give investors the flexibility to renew or extend without a fixed settlement date.
– A small amount of Bitcoin options contracts, $116 million, are set to expire on July 6, while a larger amount of $1.7 billion is set to expire on July 28.
– The put/call ratio for these contracts is 0.81, suggesting a slightly bullish sentiment in the market.
– Bitcoin futures trading has also seen an increase, with the number of traders maintaining futures positions of at least 25 BTC rising from 94 to 121.
Crypto Market Outlook
While Bitcoin derivatives are in high demand, spot markets are experiencing a decline. The total capitalization of the crypto market has decreased by 1.2% to $1.23 trillion. Bitcoin has dropped 1.1% to $30,516, struggling to break heavy resistance, while Ethereum has retreated to $1,914.
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