Analysts Detect Bullish Sentiment in Bitcoin Options Market

Despite a market correction, derivatives indicators suggest a persistent bullish sentiment towards Bitcoin ahead of the expiration of weekly, monthly, and quarterly positions on June 28th. This was stated by several experts in a conversation with The Block.

On the specified date, the put/call ratio stands at 0.51, indicating trader optimism. 

“The number of calls significantly exceeds puts, especially starting from $65,000. This is likely a byproduct of the bullish sentiment with which we began the month, rather than the current situation,” noted Bartosz Lipinski, CEO of Cube.Exchange.

According to analysts at QCP Capital, the options market in July does not anticipate increased volatility, especially following reports of payments to Mt.Gox creditors.

“We see little activity in the July derivatives market, suggesting that traders do not expect volatility around the distribution [of the collapsed exchange],” the experts added.

QCP Capital believes that price movement is likely to be constrained in the near future but could potentially become bullish by the end of the year. The company’s researchers observed large sales of calls with less than a month to expiration and aggressive purchases of positions expiring in September-December. 

Analysts at Bitfinex suggest that current positions in the options market indicate traders are speculating on a recovery in the third quarter and a rise in prices in the fourth. 

Over the past week, investors have opened call positions worth more than $300 million with a strike price of $100,000, the publication’s interlocutors emphasized. Such activity indicates that traders are either hedging their shorts or executing short-term spot orders. 

Earlier, Sam Callahan of Swan Bitcoin stated that the bearish pressure associated with the Mt.Gox distribution might be less than market participants anticipate. 

According to Luuk Strijers, Chief Commercial Officer of Deribit, June’s implied volatility values for Bitcoin and Ethereum options suggest expectations of a calm market in the coming weeks.