Bitcoin (BTC) Continues to Dominate Options Markets: An In-depth Analysis by Kaiko
- Despite recent market volatility, a bullish bias persists for Bitcoin options according to data from Kaiko.
- Last week, Bitcoin briefly dipped below the $57,000 mark before rebounding over the weekend due to easing concerns over Fed interest rates.
- The decline in Bitcoin’s price last week proved advantageous for put options set to expire at the end of May.
Bitcoin options maintain a bullish bias despite recent market volatility, with put options benefiting from last week’s price decline. However, as Bitcoin’s price recovers, call options are returning to profitability.
Bullish Shift in the Bitcoin Options Market
Put options within the $57,000 to $60,000 range briefly entered the money, offering profitability to holders amidst macroeconomic headwinds. These options, which grant holders the right to sell the underlying asset at a predetermined price, constituted approximately 28% of the volume on Deribit for the May 31 expiry. Traders holding these positions were either hedging their portfolios or anticipating further price declines. However, as bitcoin’s price recovered above $64,000, these put options are not profitable anymore, with call options in the $60,000 to $65,000 range returning to profitability.
