Traders’ interest in Bitcoin options has increased significantly as on Wednesday, the volume has jumped by 300% on the Chicago Mercantile Exchange (CME).
$48 Million in One Day
Data analytics firm Skew unveiled that CME witnessed $48 million on Wednesday. It is the highest figure reported since July 28, which means people’s belief over top digital asset has returned. On Tuesday, Bitcoin options worth $48 million reported, but on Wednesday it jumped to $48 million after surging by 300%.
The Skew analysis explained that BTC options’ volume gained a strong push because traders pick high prices for contracts’ expiry. For instance, some investors bought options at $14,000 that would expire in December 2020 while others took $18,000 for March 2021.
The activity in call options has surged many folds, which resulted in an increase in trading volume over the platform. “The CME options had a strong session, and the spike in the volume was mainly due to increased activity in call options,” said Goh from Skew while talking to crypto news agency CoinDesk.
Investors and traders prefer options to prevent any uncertainty or sudden lows and sharps in the cryptocurrency markets.
Bullish Rally in Near Future
As Bitcoin is in low volatility mode, traders are picking only bull call spreads instead of going for bear call spreads. Based on the previous data, it can be said that investors pick ball call spreads where there are strong chances of a bullish rally in the near future.
At press time, Bitcoin is exchanging hands at $10,638 after moving up by 0.39% over the recent 24-hours. Bitcoin has been trading between $10,500 and $11,000 for a third week in a row which shows record low volatility in the BTC markets.
According to crypto experts and market analysts, Bitcoin could show a breakout of up to $12,476. However, the level at $11,000 can act as a great resistance which is also a great psychological level.
The rise in options volume also presents a bullish picture for the world’s leading digital asset but for the short-term trend.