Strong Bullish Moves Shown by Bitcoin Options Market

November 16, 2020

El Salvador

Bitcoin’s options market is in the middle of its powerful bullish mood on record as the crypto runs towards its three-year highs. The spread between the prices claimed by put options, the six-month put-call skew, and the call options ending in six months, declined to an all-time low of 21.6% on early Thursday, as per the data source Skew.


The data by Skew shows the gross demand for bullish bets or call options, is outstripping the gross demand for bearish bets, or puts, by majorly on record, this is a signal of a build-up of strong bullish expectations in the industry.


The CEO of crypto index provider CF Benchmarks, Sui Chung told, Bull bias may be an all-time high, though the BTC options market is majorly permanently bullish. With bitcoin now surpasses $16,000 it is possible, this hike in bullish moods came from new traders in the market, he added.


A call options gives the owner the privilege yet not the commitment to purchase the fundamental resource at a foreordained cost or before a particular date. A put option gives the option to sell. Record bullish or bearish opinion regularly stamps significant market tops or bottoms. 


Bitcoin crossed above $16,000 early Thursday and arrived at a high of $16,157, a level last observed three years back. Examiners anticipate that the digital currency should solidify on ongoing additions for a little while before taking an action toward $20,000 before the finish of December. 


Right now, it doesn’t show up investors are in any event, thinking about a transitory pullback. That is apparent from the negative one-month skew. Nonetheless, while the options market notion hopes to have arrived at boundaries, the digital currency is still $4,000 shy of the record high of $20,000 found in December 2017. 



Image Courtesy : Pixabay


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