Bitcoin (BTC) Call Options Soar through the Roof, Early Stages of a Bull Run? |
- Hacker News
Year-to-date, Bitcoin is more than double its price. However, much more was expected from price action given how stellar the performance was in the first half of what is turning to be a mixed year. Going into 2020, experts together with supportive data drawn from Deribit, a cryptocurrency derivatives trading platform, the upcoming year could offer more opportunities judging from the overwhelming number of Bitcoin Call Options. In the last 24 hours alone, they have experienced “by far the most volume.” Pointers, this may after all be a positive indicator of what lies ahead.
Market Participants are Bitcoin Bullish
Taking to Twitter, Deribit observed that the lowest strike price for Bitcoin going into the 2020 as per the earliest expiring Call Option is $7,500. The Option expires on Jan 3, 2020.
The other two strike prices expire on Mar 27. The most traded, attracting 3.77 million contracts, has a strike price of $9,000 a pop, while the second most attractive Call option, with a strike price of $10,000, had 3.75 million contracts.
“Judging by the market activity today, 2020 is shaping up to be an interesting year for BTC. Call options seeing by far the most volume today. Top 3 options: BTC-27MAR20-9000-C 3.77 Mil BTC-27MAR20-10000-C 3.75 Mil BTC-3JAN20-7500-C 3.59 Mil.”
Deribit Bitcoin Call Options
A “Call Option” is the right but not an obligation to buy the underlying asset, in this case, Bitcoin, at a pre-determined price, the Strike Price, within a specific period.
Judging by the market activity today, 2020 is shaping up to be an interesting year for BTC. Call options seeing by far the most volume today.
Top 3 options:
BTC-27MAR20-9000-C 3.77 Mil
BTC-27MAR20-10000-C 3.75 Mil
BTC-3JAN20-7500-C 3.59 Mil pic.twitter.com/6Yj1uFZNK1
— Deribit (@DeribitExchange) December 30, 2019
All Bitcoin Options traded at Deribit are European-style meaning they cannot be settled before expiration. Settlement is also in BTC.
The Deribit Index is composed of BTC-USD spot rates from six leading exchanges, including Bitstamp and ItBit. Every 6 seconds, the index is updated by averaging the bid-spread price to mitigate impacts related to flash crashes or short squeezes prevalent in crypto exchanges.
Overly, crypto analysts and market influencers are upbeat going into the halving year. Mike Novogratz, the founder of Galaxy Digital, said Bitcoin could rise to $12,000 in 2020.
2020 prediction #1. @realDonaldTrump loses by more than 10mm votes. #2 $btc finishes over 12k. #3. @USAWrestling wins 3 golds in Tokyo (MF). #4 @tomhanks wins the Oscar for Mr Rodgers. #5 @reform and it’s partners help shrink the ‘supervised’ population from 4.5mm to 4mm or <
— Michael Novogratz (@novogratz) December 28, 2019
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