Bitcoin
Calls Dominate Bitcoin Options Despite Price Drops and ETF Outflows
Although the usual volatility has been absent in the derivatives market, the slight fluctuations observed in recent days have still managed to reveal subtle market trends.
Between June 12th and 14th, Bitcoin Options open interest increased by $20.85 billion on June 12, to $21.91 billion on June 13, before decreasing to $21.42 billion on June 14.
Chart showing Bitcoin options open from June 8 to June 14, 2024 (Source: CoinGlass)
Open interest in Bitcoin futures also decreased slightly during the period, falling from $35.25 billion on June 12 to $34.17 billion on June 14.
The initial increase in open interest followed by a subsequent decline suggests complex market sentiment when analyzed alongside price. Bitcoin fell from $69,555 on June 11 to $66,780 on June 14 after a brief recovery on June 13. The predominance of call options (67.17%) over put options (32.83%) on June 14 indicates a general bullish sentiment despite the price drop. 24-hour options volume on June 14 also skewed towards calls (59.88%), reinforcing this bullish outlook even in a declining price environment.
These subtle changes in OI were the result of a combination of several factors that influenced the broader cryptocurrency market. Bitcoin ETFs have had mixed experiences Appetizer It is exits in the last days. The recovery of Bitcoin ETFs with inflows of $100 million, juxtaposed with a sharp outflow of $226 million amid the Ethereum ETF news, shows the size of the impact the market has taken. This outflow likely contributed to the decrease in demand for Bitcoin futures, as evidenced by the decline in futures open interest.
SEC Chairman Gary Gensler’s decisive words that Ethereum ETFs will be approved This summer likely diverted investor attention and capital to Ethereum, impacting the Bitcoin derivatives market. This shift is evident in the Ethereum futures and options market, where increases in open interest in recent days reflect this shift in sentiment.
by MicroStrategy issuance of convertible notes for buy more BTC has also shaped investor sentiment. michael saylor The latest move demonstrates the company’s unwavering confidence in Bitcoin, which can certainly influence investors participating in the derivatives market. This influence is seen in their ability to maintain and add to bullish positions despite a stable price, as can be seen in the dominance of call options.
ETF outflows have a direct impact on Bitcoin futures and options markets. Outflows from Bitcoin ETFs could lead to reduced liquidity and demand in the futures market, causing a decrease in open interest. This link is evident from the data, where we observe a decline in futures open interest following significant ETF outflows. The relationship between ETF flows and futures open interest shows the importance of institutional participation and sentiment in driving the market.
Bitcoin’s sideways movement and lack of significant volatility during this period have a dampening effect on open interest. When the price remains relatively stable, traders may find fewer profit opportunities, leading to reduced trading activity and fewer open futures contracts. Bitcoin’s stable price range from June 10 to June 14, with minor fluctuations, suggests a period of market consolidation, contributing to the observed decline in futures open interest.
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Published in: Bitcoin, To look for