Bitcoin Options Open Interest Has Higher Preference for Put Calls

The world’s largest cryptocurrency Bitcoin (BTC) continues to face robust promoting stress. On Monday, Might 23, the BTC value tanked 3% shifting beneath $30,000 regardless of the U.S. fairness market shifting larger.

Bitcoin continues to commerce within the vary of $28,500-$31,500 for some time now. Glassnode information exhibits that the BTC market has traded decrease for eight consecutive weeks marking it the longest “steady string of purple weekly candles in historical past”.

Moreover, a glance into the Bitcoin derivatives market suggests the dangers of additional draw back, not less than over the following three to 6 months. In its newest report, on-chain information supplier Glassnode explains that the Bitcoin choices market continues to cost within the near-term uncertainty.

Through the market sell-off final week, the Bitcoin choices implied volatility surged considerably. Glassnode explains:

Brief-dated at-the-money choices noticed IV greater than double, from 50% to 110%, while 6-month dated possibility IV jumped to 75%. It is a break larger from what has been an extended interval of very low implied IV ranges.

Bitcoin Put Choices Have Greater Desire

With a really robust bearish sentiment, the Bitcoin put choices have a really robust desire wanting into the tip of Q2 2022. Simply over the past two weeks, the Bitcoin put/name ratio for open curiosity has surged from 50% to 70%. It signifies that the market is getting ready to hedge additional draw back dangers.

By the tip of Q2, there are robust put choices with strike costs of $25k, $20k, and $15k. On the similar time, the open name choices are very low. Thus, by the mid of this yr, buyers have a powerful desire for hedging dangers thereby speculating additional draw back value motion.

On a long-term foundation i.e. by the tip of the yr, the choices curiosity setup for Bitcoin is notably constructive. Glassnode explains:

There’s a clear desire for name choices, with focus round strike costs of $70k to $100k. Moreover, the dominant put possibility strike costs are at $25k and $30k, that are at larger value ranges than the mid-year.