Open interest in Bitcoin Options (BTC) has hit a new all-time high of $ 2.9 billion. Interestingly, this feat came just five days after the end of October, resulting in a $ 400 million put option.

The options market has tripled over the past six months, leading investors to become even more interested in the potential impact of the approaching expiration on the price of Bitcoin.

Bitcoin monthly transaction volume (in USD). Source: data on digital assets.
Cointelegraph and digital asset data also show that monthly bitcoin transaction volume and bitcoin futures volume have been increasing since late October.

The volume of BTC futures contracts on the exchange. Source: data on digital assets.
When analyzing alternatives, the most relevant calculation is the slope of 25% delta. This indicator compares buy (buy) and sell (sell) options side by side.

It will be negative if the premium for the put options is higher than that of the corresponding risk options. Negative skewing results in higher costs to protect the downside, which indicates growth.

The opposite is true when the market producers are in a bearish tone, causing the 25% delta deviation index to be positive.

Fluctuations between -10% (slightly bullish) and + 10% (slightly bearish) are normal. This has not been the case since October 19, when Bitcoin surpassed the $ 11,600 level and has never looked back.

This indicator is the most important clue that a derivatives trader needs to know about today’s Bitcoin options sentiment.

Monitor the ratio of purchases to purchases for further confirmation
To further explore how these tools are used in traders’ strategies, one should dive into the buy-to-buy relationship. Call options are usually used in neutral and bullish strategies, while call options are the other way around.

By analyzing the open interest rate between call and put options, one can estimate the degree to which traders will fall or rise on a large scale.

Open interest gives 30% higher latency. This difference widened after the end of October, as the index hit its lowest level in three months.

Based on the current conditions displayed in the variance index and buy ratio, there is no reason to worry about the growing open interest in options.

The market signals bullish intentions and liquid derivatives markets allow large players to hedge and enter the spot market.

In terms of the BTC option, everything is set to continue the current bullish trend.

Source: CoinTelegraph