Bitcoin (BTC) price failed to breach the $ 20,000 level this week, but several volume and open interest pips were made on its way to $ 19,484. In a remarkable achievement, the open interest rate on cumulative futures reached $ 7.4 billion on derivative exchanges.

As shown above, there has been a 110% increase in the past six months, and it is also worth noting that the Chicago Mercantile Exchange (CME) currently has more than $ 1.1 billion in these contracts. These data are undeniable evidence of the increased institutional participation in the BTC markets.

Volume soared to new heights, so is it following the bitcoin price?
On November 24, the total volume of the cryptocurrency market also reached a record high. Some investors may think this is a bullish event, but it is important to remember that every trade has a seller and a buyer. So, how can the top seller list be considered optimistic?

The total volume of each spot market reached $ 285 billion this week, but there is always the possibility that some of these exchanges have increased in size. Despite this, $ 285 billion is 11% higher than the March 13 peak.

Bitcoin options markets also set a new hike in open interest rates yesterday. These are contracts that a buyer pays upfront to buy (call) or sell (hold on to) a predetermined price in the future.

Note that the current open interest rates on BTC options of $ 5 billion represent a 316% increase from the $ 1.2 billion level just six months ago. While this includes both buy and sell options, this impressive increase in liquidity is a positive development.

Open interest options deserve special attention
The open top interest draws attention to the new arbitration offices and opens the door to larger institutional clients. To better understand how professional traders can determine the price to continue the current uptrend, 25% delta deviations should be analyzed.

A positive partial deviation of 25% indicates that put (sell) options are worth more than similar (buy) calls and thus indicates a downtrend. On the other hand, negative sentiments indicate bullish tendencies.

Options for BTC delta deflection for the month of 25%. Source: Skew
The chart above shows that the index on November 24th at -27.5%, practically coinciding with the lowest level. This is undoubtedly a very bullish case and the data indicates that options such as traders are not ready to sell protection.

Hence, even if the $ 20,000 level has not yet been breached, there is ample reason to celebrate a healthy market without indications of unnecessary influence or waning investor interest.

Source: CoinTelegraph