Bitcoin Options Open Interest Higher Than Futures, What Does That Mean?

Bitcoin Options Open Interest Higher Than Futures, What Does That Mean?

Bitcoin appears to have reached a ceiling as the price continued to hover below the psychological resistance level of $30,000. This has led some to believe that the rally may soon end as futures OI have remained relatively flat all year.

But the options market has a different story to tell.

Possible Bitcoin Rally?

According to the latest diagram According to Glassnode, the amount of open interest in Bitcoin options contracts has reached $10.3 billion. Futures contracts, on the other hand, stood at $10 billion, indicating that the amount of OI in Bitcoin options contracts has surpassed futures contracts for the first time ever.

Open interest can help traders get a better sense of whether the market is getting stronger or weaker, bullish or bearish. Therefore, a large number of buying options for Bitcoin showed that many market participants are optimistic about its price trend and expect it to rise.

For the first time, the level of open interest was determined #Bitcoin Options contracts ($10.3 billion) have exceeded those held in futures contracts ($10.0 billion).

Futures OI has been relatively flat in 2023.

This results from significant call option buying as investors begin to bid for higher… pic.twitter.com/JtKM0uQwZP

— glass node (@glass node) April 8, 2023

Increased trading volume, up 28.39% in the last 24 hours, further confirmed the bullish narrative. During the same period, the price of Bitcoin also saw a slight increase of 2%. On a YTD basis, the crypto asset recorded more than 73% price gains.

More accumulation

According to data from Glassnode, the flagship crypto has seen significant accumulation recently. The increase in price action has prompted the number of non-zero addresses will skyrocket, reaching a whopping 45.5 million, indicating a major improvement in Bitcoin's on-chain activity.

Another blockchain analytics company, Santiment, observed a rising rate of Bitcoin hodlers. It said "traders appear increasingly content to leave their pockets unmoved in the long term." Interestingly, it was also noted that a similar trend emerged from January to April 2021. At this point, Bitcoin rose above $64,000 for the first time.

Meanwhile, the Bitcoin network's hash rate as well as mining difficulty reached ATHs, as reported recently. Due to the steady rise in prices, miner revenue has also seen a growth of almost 70% since the beginning of the year. This is a much-needed reprieve after a rocky 2022.

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