The world’s largest cryptocurrency by market capitalization fell Thursday as traders watched Friday’s U.S. jobs report cautiously. The Dow Jones Industrial Average rose 0.1%, while the S&P 500 rose only 0.8%.
The monthly US jobs report will provide further signals on whether current monetary policy is addressing inflation. It may also provide interest rate expectations before the Federal Reserve’s final meeting of the year on December 13.
bitcoin BTC
-1.00%
which tends to be correlated with major stock indices, was down 1.2% at 1:22 PM ET. Changed hands for $43,383.
Open interest still indicates optimistic expectations.
Despite two days of slight declines, open interest for Bitcoin options on the Deribit derivatives exchange shows there is plenty of currency outstanding for the $75,000 strike price for the late January expiration date. This suggests that traders purchasing the rights to buy Bitcoin at that level can expect the market price to continue rising.
Deribit Chief Commercial Officer Luuk Strijers said open contracts could have been sold at a fraction of the January call spread of $50,000 to $75,000. “This means traders can expect the market to expire between those strikes,” Strijers told The Block.
According to Deribit data, there are currently 3,684 Bitcoin options calls outstanding on derivatives exchanges with a strike price of $75,000, with a notional value of approximately $162 million. This group of outstanding calls is second only to the strike price of $50,000.
Bitcoin options open interest represents a significant percentage of the $75,000 call strike price.
Open interest in Bitcoin options across all major centralized cryptocurrency derivatives exchanges has reached an all-time high of $17.3 billion, according to The Block’s data dashboard.
Increasing open interest means new funds are entering the market, indicating increased participation and potential liquidity.
Regarding the recent bounce in the Bitcoin market, Strijers believes that a combination of factors, including widespread optimism in anticipation of a possible Securities and Exchange Commission decision on a spot Bitcoin ETF, will allay concerns following Binance’s legal settlement. He said he followed suit. It is important that geopolitical tensions rise, inflation moderates, and institutional participation steadily increases.
Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.