Bitcoin surged last night (13), breaking through the resistance level of $90,000, and then reached a new all-time high of $93,000 in the early morning. At the same time, traders on the Chicago Mercantile Exchange (CME) are also expanding their bets that "Bitcoin will break through $100,000."
Traders are flocking to CME Group’s “$100,000 Call Option,” according to CF Benchmarks.
CME Group is a platform favored by institutional investors, and the latest rush to call Bitcoin options follows a trend from cryptocurrency derivatives trading platform Deribit. A call option gives investors the right to buy an underlying asset at a predetermined price before a specific date, but the holder of the call option does not have to perform the purchase action.
Thomas Erdösi, Head of Products at CF Benchmarks said:
According to data from CF Benchmarks, the 30-day fixed-maturity 25 delta slope has crossed the 5-volume threshold and is approaching year-to-date highs, representing a significant increase in demand for upside exposure.
The so-called "25 Delta slope" refers to "a put option with a delta of negative 25%" and "a call option with a delta of 25%" to prove that there is a difference in the market's view of implied volatility. This 25 delta slope Measuring how expensive a call option is relative to a put option provides clues to market sentiment. In the current case, breaking the 5-volatility threshold means that call options are more expensive than puts, and highlights that traders are preparing for possible further increases in Bitcoin prices.
Data from CF Benchmarks shows that options with strike prices above $100,000 have also seen a surge in demand, evidenced by an increase in the implied volatility of these options. CME’s derivative tracks the New York version of the CF Benchmarks Bitcoin reference rate.
The long position of investors is consistent with the trend within the Deribit exchange. Investors on this derivatives platform have been buying large amounts of $100,000 Bitcoin calls since at least the end of September.
Although the U.S. dollar index continues to rise, indicating that the U.S. dollar exchange rate continues to rise, Bitcoin's rise seems to be unaffected. Bitcoin prices have risen more than 36% since Trump won the U.S. presidential election on November 6.
"Investors rush into bullish options, betting on "Bitcoin breaking through $100,000." This article was first published on (Block Guest).
