[Analysis] "Futures and Options Market Predicts Bitcoin Rally"

Source
Uk Jin

Summary

  • It was reported that Bitcoin monthly futures contracts are trading at about 12% higher than the spot price.
  • It was stated that generally a premium of 5-10% is considered neutral.
  • Despite the decline in Bitcoin's price, it was evaluated that market sentiment has not been significantly damaged.
Bitcoin 2-month futures annualized premium. Source: Laevitas.ch
Bitcoin 2-month futures annualized premium. Source: Laevitas.ch

Bitcoin (BTC) has recently fallen below the $100,000 mark, but positive signals are still being detected in the futures and options markets suggesting that Bitcoin could surpass $100,000.

On the 25th (local time), the cryptocurrency-focused media outlet Cointelegraph reported this, citing data from Laevitas.

According to the data, Bitcoin monthly futures contracts are currently trading at approximately 12% higher than the spot price. This indicates strong demand for long positions (bullish bets). Generally, a premium of 5-10% on futures prices is considered neutral.

Additionally, the data shows that as of today, Bitcoin put options (the right to sell) are trading at a 2% lower price compared to call options (the right to buy). Cointelegraph evaluated, "When a correction is expected, the put option premium generally rises to about 6%," adding, "Although Bitcoin's price has recently fallen, market sentiment has not been significantly damaged."

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Uk Jin

wook9629@bloomingbit.ioH3LLO, World! I am Uk Jin.
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