- Bitcoin options contracts worth over $3.3 billion exchanged hands within 24 hours across major crypto exchanges.
- Analysts on Deribit describe it as the largest trading volume recorded in three months as the price of the asset nears a two-month high.
- On the flip side, Bitcoin bears suggest that the surging price will cool as the BTC spot ETF will not be approved in the short term.
The surging prices in the digital asset market are visible as several sectors are recording growth not seen in months. Derivatives trading among top assets will continue to rise with recent trends, according to market pundits.
Bitcoin (BTC) trading above $30,000 has sparked demand for the asset in the options market with surging bullish bets for two straight days. The boosted activity in the market comes as the BTC nears its two-month high following renewed institutional demand sparked off by BlackRock’s ETF filing.
Over the past 24 hours, BTC option contracts worth a little over $3.3 billion have been traded across many derivatives exchanges. The figure marks the highest daily performance of BTC options in three months. Popular options exchange Deribit stated that there’s more room for growth after it recorded 80% of the total volume.
“We have seen the biggest trading volume in three months. There is a lot of interest in buying call options,” Lin Chen Deribits Asia’s business personnel said. In the past week, call spreads have made up 45% of total block flows. Patrick Chu, the director for institutional sales at Paradigm explained that surging price has led to call overwriters reducing risk by buying back the bullish exposure.
“Mostly, people have been buying back the topside, especially option overwriters given the rapid upward move,” he noted.
High demand raises the bullish index
The activities of traditional finance (TradFi) players have set the tone for an uphill climb in the prices of digital assets. The push for a spot BTC ETF among major financial market players has led to a scramble between retail and institutional investors for the asset driving up major index ratings.
The Bitcoin’s Fear and Greed Index has moved into the greed zone at 65 with bulls keen on more price surges to mark a good run in Q2 2023. In the derivatives market, Deribit’s Bitcoin volatility index (DVOL) measures the 30-day volatility of the asset. According to Amberdata, the DVOL stands at 59.24 the biggest recorded since April.
Chen commented that the DVOL index was pushed up as a result of rising prices and a “the increased demand for options.”
