1. 2023 Bull Market and BTC ETF Approval
In 2023, the Bitcoin market experienced significant growth, with an accompanying surge in CME options open interest (OI) as market participants increased. During this period, investor interest in Bitcoin reignited, leading to a clear uptrend in OI.
Subsequently, the approval of a BTC ETF in 2024 brought even more institutional investors and new participants into the market. As a result, OI in the CME options market surged, greatly enhancing liquidity in the Bitcoin market.
2. Profit-Taking in March 2024
In March 2024, Bitcoin briefly reached a new all-time high, after which prices entered a correction phase. During this time, the Net Realized Profit and Loss (NRPL) data showed that many investors were realizing profits, leading to a significant spike in NRPL. This indicates that in March 2024, many investors took profits, which temporarily increased selling pressure on Bitcoin.
3. CME Options OI Sustains Higher Levels Compared to 2023
Despite entering a correction phase after March 2024, CME options OI continued to remain at levels higher than those seen during the 2023 bull market. Typically, OI tends to decrease during price downturns or corrections, but during the 2024 correction, OI has remained at relatively high levels. This suggests that market participants still maintain a bullish stance on Bitcoin and are holding their positions.
The strong bullish sentiment regarding Bitcoin’s long-term outlook can also be inferred from the fact that OI has not fallen back to 2023 levels, indicating that confidence in the market remains robust. This implies that participants are likely positioning themselves in anticipation of the next bullish cycle.
Conclusion
Beginning with the bull market of 2023, the approval of a BTC ETF in 2024 had a significant impact on the market. In March 2024, Bitcoin saw a wave of profit-taking, with N
Written by sachi
