The recent Crypto Market-Lasts have caused the once popular $ 120,000 Bitcoin (BTC) settings aimed to lose its crown to the $ 100,000 effort in a sign that dealers are reassessing their bullish expectations.
At the time of the press, the $ 100,000 call was the most popular BTC option on the stock exchange and boasting a nominal open interest rate of $ 1.55 billion. The nominal open interest rates represent the dollar value of the number of active option contracts at a given time.
Meanwhile, the $ 120,000 call, the former leader until last month, stood at the number two position with a nominal open interest rate of $ 1.33 billion.
A call gives the buyer the right but not the obligation to buy the underlying asset at a predetermined price at a later date. A call buyer is implicit Bullish on the market. Therefore, a significantly built open interest in higher strike reflects out of money, such as $ 100,000 and $ 120,000, Bullish expectations.
The shift lower in the most preferred call to the $ 100,000 strike probably shows that dealers are choosing a more conservative effort in the wake of the recent pricing accident to less than $ 80,000. In addition, it can signal a wider reassessment of the bullish mood.
The 25-DELTA RISK COVERS that measure the difference between implicit volatility (demand) for higher strike calls compared to lower strikes, shows negative readings or bias for protective removal options for the May outlet. It is representative of fear of an extended price glass on the market.
Pricing remains bullish in favor of call options after May. In addition, the dollar value of the total number of calls open at the press time was over $ 16 billion – almost twice more than $ 8.35 billion in putting options.
