BCGAME - Free 5BTC Daily Bonus!An unusually large number of bitcoin (BTC) calls to puts on bitcoin options exchanges suggests a surge in bullishness for the number one cryptocurrency among options traders.
News of the abnormally low put-to-call ratio was first shared by crypto market analyst Laevitas, which yesterday pointed out that the put-to-call ratio on the Deribit crypto derivatives exchange is now “at its level lowest since [the] end of December 2020.”
Bitcoin Purchase Option
In options trading, a “call” is the term used for a bet that the prices of an underlying asset will be higher in the future, while a “put” is a bet on lower prices. As a result, more call options than put options mean that most traders have a positive market outlook, expecting prices to rise.
There are over 2x the number of calls over puts on Deribit. Open interest Put/Call ratio is at it's lowest since end of Dec. 2020. pic.twitter.com/UYwa4ETqUC
— Laevitas (@laevitas1) August 30, 2021
Deribit image confirmation is also data from all bitcoin option exchanges compiled by derivatives analyst firm Skew, which showed an even lower reading. According to Skew's data, the ratio of call-to-call for open interest on all exchanges was 0,48, down from the lowest point of 0,49 during the bitcoin rush last December.
Yesterday's number rose slightly from an even lower reading of 0,47 on the 28th and 29th of August. A ratio of puts above 1 is considered a settlement indicator, while a ratio of puts below 1 is considered a call opportunity.
However, as history has shown, most in a market are not always right, and it may very well be that most option bets fail and instead expire worthless.
Bitcoin option exchanges currently covered by Skew include the aforementioned Deribit, as well as the Chicago Mercantile Exchange (CME), Bit.com, OKEx and LedgerX, of which Deribit is by far the largest in volume and open.
News of the exceptionally upbeat looking options market was also picked up by Zhu Su, CEO of Three Arrows Capital, who casually commented, "Does anyone remember what happened in December 2020?"
for the lazy people pic.twitter.com/6HuCCOtCmN
— Choo (@ChooChooXBT) August 30, 2021
It's worth noting, however, that the picture isn't clear for bitcoin, with investment encryption firm CoinShares reporting yesterday that bitcoin saw mutual fund outflows for the eighth consecutive week last week totaling $3,8, XNUMX million. According to CoinShares, this was despite the fact that cryptoassets generally saw inflows over the same period, which the company attributes to "improved sentiment in altcoins rather than bitcoin."
At 12:50 UTC, bitcoin was almost unchanged for the past 24 hours, trading at $47.950. The price has dropped 3% in the last 7 days.
The bitcoin price stagnation came at a time when many altcoins — and particularly those connected to smart contract platforms like Solana (SOL) and Fantom (FMT) — have pumped, contributing to a decline in bitcoin's market dominance.
