Bitcoin options turnover recovers to pre-FTX collapse levels

Last week, the volume of bitcoin options trading on Deribit totaled $4.25 billion. The last time such high levels were seen was amid volatility sparked by the collapse of FTX.

Bitcoin options trading on @DeribitExchange totaled over $4 billion last week as demand for bullish call options increased, according to @godbole17.https://t.co/OEl7n52yF8

— CoinDesk (@CoinDesk) January 24, 2023

Over the last week of December, the indicator rose 375%, according to Amberdata.

The rise in trading activity was driven by growing interest in buying call options, indicating a bullish mood among most market participants.

“The share of calls relative to total trading volume reached a year-to-date high of 66%. This is another sign of improving sentiment in January”, — Kaiko Research analysts said.

Open interest rose to $5.92 billion — the highest since October 27, 2022.

The surge in open positions alongside price gains signals liquidity flowing into the market.

Earlier, LookIntoBitcoin analysts pointed to the further steps by hodlers as a key factor underpinning the current Bitcoin rally.

Previously, LookIntoBitcoin analysts allowed for the first cryptocurrency to enter the an early stage of a bull market.

As a reminder, Bloomberg strategist Mike McGlone forecast that the Nasdaq Composite would fall below its 200-day moving average, which could delay the rise in the price of digital gold.

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