Do you offer insurance if you expect that there is a low chance that a claim is being made? Perhaps you’re just while you’re pocketing the premium without thinking again. Bitcoin (BTC) traders have done the same thing in the BTC options market registered on DeLibit, suggesting bullish price expectations.
Recently, more and more traders are selling BTC Put options.
They implement this strategy in a cash reserved way by retaining the corresponding amount in Stablecoins, allowing BTC to be purchased if the market drops and Put Buyer decides to exercise their right to sell BTC at a given high price.
This strategy allows traders to collect premiums (paid by put buyers), while still accumulating Bitcoin if options are exercised. In other words, it is an expression of long-term bullish feelings.
“There is a noticeable increase in cash-backed put sales using Stablecoins. This is another sign of a more mature, long-term approach to BTC accumulation and a continuing expression of bullish sentiment,” Lin Chen, Asian head of business development at Deribit, told Coindesk.
Chen said BTC holders are selling high strike call options to collect premiums and generating additional yields on top of Coinstash. The index has fallen from 63 to 48 since the panic sale on April 7th, according to data from Charting Platform TradingView.
“Investors are observing that they remain long-term bullish against BTC, especially among ‘holders’ from crypto who are willing to hold throughout the market cycle,” Chen said.
Bitcoin prices rose to $75,000 from the early slides of the month, probably behind the shelter demand and the story of updated institution adoption.
According to the data source Amberdata, a sudden price recovery has reset and reset the risk reversal reset of the BTC options, suggesting a bias in call options across the time frame. Over the past two days, traders have made special calls with strikes of $95,000, $100,000 and $135,000 through the commercially available technology platform paradigm. At the time of writing, there was an assumption open interest in the $100,000 strike call being DeRibit’s most popular option play, with over $1.6 billion.
According to data tracked by Volmex, how important it is to track flows in the options market is to track flows in the options market can be explained by the fact that options related to Deribit’s BTC options and US BlackRockspot Bitcoin ETF (IBIT) were $9 billion, as they did on Wednesday.
The story continues
