Between September 7 and September 13, Bitcoin’s open interest in options surged from $18.46 billion to $21.06 billion. This rise aligns with Bitcoin’s price increase from $53,900 to $58,100.
Stable Daily Options Volume Amid Rising Open Interest
Despite the increase in open interest, the daily options volume remained relatively stable. The trading volumes for September 12 and September 13 were $1.41 billion and $1 billion, respectively. The call/put split was nearly even, with 51.14% of the volume from calls (11,189 BTC) and 48.86% from puts (10,688 BTC).
Balance in Trading Volume Reflects Market Uncertainty
The nearly balanced trading volume suggests a period of uncertainty. Traders are hedging their risks and waiting for clearer signals. The distribution of open interest, however, shows a significant skew toward calls. Calls make up 65.41% (218,936 BTC) of the open interest, while puts account for 34.59% (115,775 BTC).
Long-Term Bullish Sentiment Evident in Call Skew
This skew indicates a long-term bullish sentiment despite the balanced daily volume. While short-term traders appear cautious, the majority of open interest positions are set up to benefit from future price increases.
Divergence Signals Future Market Trends
The contrast between balanced volume and the call-heavy open interest suggests that while traders are cautious in the short term, they anticipate further gains for Bitcoin. This situation is common in volatile markets where there is underlying optimism about future price movements. If Bitcoin’s price continues its upward trend, the dominance of call options could amplify market volatility, especially around key strike levels.
Market Awaiting Confirmation of Next Move
Overall, the market is poised for confirmation of its next major move, with underlying optimism driving future expectations.
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