Bitcoin (BTC) options traders are betting on the long-term future of the asset, with 10,752 BTC block call options recently traded worth over $300 million.
Geeks.live, a well-known options trading platform, recently highlighted this metric. These call options are financial contracts that give the holder the right to purchase a predetermined amount of BTC at a specific price on or before a specific date.
Even though the ETF news is over, there will be no significant benefits soon and the hype will be over. But BTC attracted market money and the price rose by $1,000 compared to last week, while other coins were weaker.
And looking at the options data, it’s betting on a longer-term uptrend… pic.twitter.com/kq9NNuojG5
— Greeks.live (@GreeksLive) October 18, 2023
The increased block call options, signaling bullish sentiment towards BTC, accounted for more than 40% of the total trading activity on the day. The prevailing uptrend in Bitcoin price has created a wave of optimism and triggered these trades.
Interestingly, the most widely used strategy by traders was to sell short-term at-the-money (ATM) call options while simultaneously buying forward out-of-the-money (OTM) call options.
This strategy expresses mixed sentiment as traders benefit from short-term market volatility and a long-term bullish outlook for Bitcoin. The premium received from selling the short-term calls is invested in buying the forward calls that are out of the money.
The increased activity indicates continued confidence in Bitcoin’s potential despite recent price fluctuations. Notably, the market volatility triggered by the recent BlackRock ETF application hoax has subsided, leading to a decline in the price of BTC.
Nevertheless, Bitcoin appears to have attracted a lot of institutional and private interest. BlackRock CEO Larry Fink emphasized that the rapid price rise above $30,000 after the report shows investor interest in cryptocurrencies.
With the price of Bitcoin up $1,000 compared to the previous week while other cryptocurrencies experienced weakness, it is evident that Bitcoin remains the center of attention for many market participants.
BTC Price – Oct 19 | Source: Trading View
Notably, BTC has held above the $28,000 mark despite the FUD that accompanied the rise to $30,000. The asset has fallen just 0.55% since October 16, changing hands at $28,343 at the time of reporting.
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