The price of Bitcoin (BTC) has consistently recorded pleasant growth, and some analysts see this as not stopping and continuing.
In a recent analysis conducted by leading derivatives exchange Deribit, an optimistic view of Bitcoin's price movement in early 2024 was revealed. This optimism is based on an examination of Bitcoin's put-call option ratio, an important metric in the options market.
For your information, options, as one of the financial instruments, give traders the right (but not the obligation) to buy (buy option) or sell (put option) the underlying asset at a specified price within a certain time period.
The put-call ratio, a key indicator in options trading, measures market sentiment. A lower put-call ratio indicates a greater tendency among traders to bet on an asset price rise rather than a fall
BTC Price Potential to Soar
NewsBTC reports, Deribit analysis revealed a significant trend where the number of buy options is surpassing put options in the Bitcoin options market.
Chief Commercial Officer at Deribit Luuk Strijers, noted that the put-call ratio for Bitcoin has consistently been between 0.4 and 0.5 throughout 2023
Notably, data shows increased interest in call options, especially those expiring in March and June 2024, suggesting investors are bracing for potential BTC price appreciation during this period.
A put-call ratio falling below one is considered a bullish indicator, indicating that buying volume, representing bets on a price increase, exceeds sell volume, representing bets on a price decrease.
According to Deribit's latest findings, Bitcoin's put-call ratio currently stands at 0.42, reinforcing the bullish sentiment in the market
The crypto derivatives market has seen significant activity in November, driven by high levels of implied volatility (DVOL), according to Strijers. This surge in market activity has provided opportunities and increased overall market volume.
With US$5.7 billion in Bitcoin options and US$2.7 billion in Ethereum options set to expire at the end of December, the market is poised for a significant move.
Bitcoin continues to experience positive momentum, recording an increase of 1.8 percent in the last 24 hours. Trading at around US$38,344, the asset has maintained gains achieved at the end of the previous month.
The significant increase in trading volume, from around US$11 billion at the start of the week to more than US$21 billion in the past day, indicates increased investor engagement and increased buying pressure in the market. #BTC #BinanceTournament #safu #Web3Wallet $BTC $BNB
