Despite developments that could amplify downside risks for the top cryptocurrency, put-call rates for Bitcoin options remain bullish ahead of the quarterly expiration on the last Friday of this month, according to analysts.
Recent developments may intensify selling pressure on Bitcoin. Trustee Mt. Gox announced that Bitcoin and Bitcoin Cash repayments to creditors will begin in July. Moreover, German authorities seized 50,000 Bitcoin worth $2.1 billion in a piracy operation, and US spot Bitcoin ETFs experienced seven consecutive days of outflows.
Despite this pressure, analysts note that derivative market indicators continue to show continued optimism for Bitcoin as it approaches weekly, monthly and quarterly options expiration on Friday, June 28.
“There are far more calls than puts, especially above $65,000. This is likely a by-product of the bullish sentiment we have had this month, rather than the current situation we are considering. German authorities have Cube.Exchange CEO Bartosz Lipinski told The Block that there were about $900 million in outflows last week, a significant decrease from recent highs.
In an interview with The Block, Bitfinex analysts also pointed to a bullish put-call skew, highlighting that the put-call ratio for quarterly expirations scheduled for late June is 0.53.
“This ratio indicates a higher number of call options compared to put options, suggesting a bullish sentiment among traders,” the analysts explained.
Implied volatility means a stable outlook after Mt. Geumgang. Gox Announcement
According to QCP Capital analysts, the options market closed Monday at Mt. We do not expect volatility to increase in July following the Gox creditor repayment announcement. “We saw very little activity in the options market in July. “This suggests that the market is not anticipating the volatility of distribution itself,” they said.
Price movements are likely to be limited in the short term, but are likely to strengthen towards the end of the year. “Our desk has been selling large volumes of calls with maturities of less than one month and aggressively buying September-December calls,” QCP Capital said. This is consistent with broader market sentiment, with traders predicting a significant rebound towards the end of the year, the analysts added.
This is consistent with the observations of a Bitfinex analyst who told The Block that current options market positions have traders speculating about a recovery in the third quarter and higher prices in the fourth quarter. “Over $300 million worth of $100,00 strike call options were opened over the past week,” Bitfinex analysts added. Analysts added that this activity could indicate that traders are hedging current short positions or selling spot money in the near term.
Bitcoin BTC
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According to The Block’s, it has changed hands for about $61,046 at the time of this writing and has been trading flat over the past 24 hours. Pricing page. During the same period, the price of Ethereum rose more than 2.5% to $3,365. The global cryptocurrency market capitalization is currently at $2.38 trillion, down 1.1% over the past 24 hours, according to data from Coingecko.
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