© Reuters.
The derivatives market has seen a significant rise, echoing the fervent activity last seen during the cryptocurrency’s all-time highs in late 2021. The increase in the number of contracts to perpetual terms and the number of options opened this year indicates a renewed enthusiasm for speculation in bitcoin, following the rise in the price of the cryptocurrency since its low point in 2022. This resurgence is largely due to expectations surrounding the potential approval of the first spot bitcoin exchange-traded funds (ETFs) in the United States.
Earlier this week, Deribit, a leading digital asset derivatives exchange, revealed that open interest in bitcoin options on its platform had reached an unprecedented $14.9 billion. This figure exceeds the previous record of $14.4 billion set in October 2021. Caroline Mauron of Orbit Markets observed a strong appetite for cryptocurrency call options, with investors placing leveraged bets on the skyrocketing price of bitcoin to $100,000 or more. A critical resistance level at $38,000 is being closely watched by traders.
On Thursday, the price of bitcoin approached the $38,000 mark, before falling to $36,264 on Friday afternoon in Singapore. Analysts closely monitor several key trends in the bitcoin futures and options markets to gauge investor sentiment and market direction. These include the behavior of perpetual futures and curve changes, as well as insights from options trading activity.
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