BTC Surging Past $60,000, as the Bitcoin Option Block Trading Showing Bearish Trends
The Bitcoin options block trading has experienced a notable resurgence after a period of dormancy, with trading activity surpassing $500 million in notional value. Despite Bitcoin’s attempt to reverse and surge past $61,000, recent trading suggests a shift towards a more bearish sentiment.
Overview of Bitcoin Option Block
The Data indicates that 3,643 Bitcoin options block calls were traded, representing 24% of the total trading volume for the day. Additionally, 2,084 BTC block put options accounted for 14% of the volume. The data also reveals that Bitcoin’s medium-term implied volatility dropped below 50%, indicating a cautious outlook among major market players and BTC whales for this month’s market trend. This comes after repeated rejections at the $60,000 mark, and with the Bitcoin price now trading 4.32% higher above $61,000.
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In addition to Bitcoin, Ethereum options have also seen significant activity, with 31,430 ETH block call options making up 20% of the day’s trades and 28,488 ETH block put options contributing 18%. This shift in focus indicates a current trend among crypto traders to sell call options and buy put options.
Bitcoin also displays strong bearish signals, with over 80% of short-term Bitcoin holders facing losses on their purchases made at prices higher than the current market value according to On-Chain data. This situation resembles patterns observed in 2018, 2019, and mid-2021, signalling a potential bearish trend amidst a panic-like situation among a considerable number of investors.
Bloomberg commodity strategist Mike McGlone suggested that Bitcoin could lead the way for the reversion of risk assets, potentially influencing the broader market. In contrast, companies like Metaplanet continue their Bitcoin purchases with a long-term perspective in mind.
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