BitOffer Institute: Bitcoin Call Options Reached New Highs, Bulls Coming Soon
Datas showed that the trading volume of BitOffer Bitcoin call options surged. A chart of BitOffer Options holding positions provided by Lucian, the chief analyst on BitOffer, indicates that since May 13th, the holding positions of call options contract on BitOffer has continued surging. And recently, it has reached a peak of 1.5 billion USD in 2020, while the put options contract holding only had a tiny increase.
From the data above, we can see that after the bitcoins 3rd halving on May 12th, the bullish expectation of the market to the Bitcoin market kept being positive. Even after the halving, the market hovered around the $10,000 mark, the bullish expectation is still held by the investors. As Lucian analyzed, although the market remained sideways, an uptrend is still ongoing on the daily chart, and the weekly candlesticks continued increasing with a low volume, which means most of the capitals still held the Bitcoins.
Checking Bitcoin Fear & Greed Index, the index has been back above 50. After the plunge on March 12th, the market cannot stop longing bitcoins. As the longs now takes the lead, the market tends to be bullish again.
While the options trading volume increased, the performance of futures seems normal. According to the market data, the holding positions of Bitcoin Futures is 4 billion USD, grew by less than 10%. However, the latest data shows that the BitOffer Options holding positions reaches 1.5 billion USD, grew by 500%. It is obvious that the Bitcoin Options chased Bitcoin futures in a close gap. The year 2020 is the year for options trading on the Bitcoin market. The options trading is about to explode in the next 3 years.
Here is a simple comparison between Bitcoin Options and Bitcoin Futures:
While the Bitcoin market plunged on June 2nd, the liquidation of the futures trading reach 100 million USD, but the options trading enabled investors to earn 160 times profits.
When the market dropped by $800 in 5 mins, the change was -8%.
If you bought a 5-mins put options on BitOffer,
Then you would earn $800, compared with the $5 premium that you used to buy the options contract, the profit ratio reached 160%.
What if you short Bitcoins 100X?
The profit ratio would only be 8 times.
After realizing the disadvantage of the futures trading compared with Bitcoin Options, more and more cryptocurrency exchanges started entering the options market. BitOffer, as the first one launch Bitcoin Options, also the platform owns the highest options trading volume, now the active users reached a number near 130,000. BitOffer Options supports investors to choose the options tenor from 2-mins to 7-days. Moreover, it also enables investors to close the options contract before the expiry date. Now, Ethereum (ETH) options also has been launched on BitOffer.com.
BitOffer, a Better Offer.