November 23, 2024

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Bitcoin options data highlights traders’ belief in further BTC price upside

1 min read
Bitcoin options data highlights traders’ belief in further BTC price upside

Bitcoin (

Extraordinary options premiums and continued optimism

Two noteworthy observations emerge from this data. Bitcoin bulls utilizing options contracts prior to the 17% rally that began on Oct. 23 were paying the highest premium relative to put options in over 12 months. A negative 18% skew is highly uncommon and signifies extreme confidence or optimism, likely fueled by expectations of the spot Bitcoin ETF.

What stands out most, however, is the present negative 13% skew after Bitcoin’s price surged by 26.7% in the 15 days leading up to Oct. 27. Normally, investors would seek protective puts to hedge some of their gains, but this did not occur. Consequently, even if the initial demand for call options was primarily driven by ETF expectations, the prevailing optimism has endured as Bitcoin soared above $34,000.