- 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.
Continued Bullish Outlook Despite Market Shifts
Despite this shift, calls continue to outnumber puts in terms of volume, signaling an overall bullish outlook among market participants. Looking ahead, Bitcoin options contracts set to expire on September 27 are dominated by call options, with a strike price of $65,000 emerging as the most popular choice. This indicates that just over $300 million worth of call options will be profitable if bitcoin maintains a price above $65,000 by the end of September, suggesting a widespread bullish sentiment toward prices hovering around all-time highs by that time.
Meme Coins Lead in Leverage
Meanwhile, while the recent market correction has led to declines in the value of many meme coins, some have maintained their dominance in leverage among the top 30 altcoins by market capitalization. Kaiko reports that Pepe (PEPE) and Dogwifhat (WIF) stand out with leverage ratios double that of other altcoins. Following closely is Filecoin’s FIL token, which experienced a rally following its integration with Solana in mid-February, trailed by Bitcoin Cash (BCH).
Conclusion
Despite recent market volatility, a bullish bias persists for Bitcoin options. The decline in Bitcoin’s price last week proved advantageous for put options, but as Bitcoin’s price recovers, call options are returning to profitability. Meanwhile, some meme coins have maintained their dominance in leverage among the top 30 altcoins by market capitalization. Looking ahead, the market shows a bullish outlook, with call options dominating Bitcoin options contracts set to expire on September 27.
