Over the weekend, the option block market experienced significant activity, with block orders exceeding $5 million. The majority of these orders were for call options. This increase in call activity followed the rise in the price of Bitcoin (BTC) to approximately $64,300, a level last seen on November 15, 2021, and the highest price of the year.
Bitcoin Gains Support from Options Market
According to data from Greekslive, there was a notable increase in call options over the weekend in the option block market, which is usually known for transactions exceeding $5 million. This surge in buying activity, particularly as Bitcoin reached its yearly high of $64,300 on the Binance exchange today, points to a rising bullish sentiment among investors.
The significant number of short-term bull spreads being traded in the market signals an atmosphere of increased optimism and a strong inclination towards more action. As a result, the ultra-short-term implied volatility (IV) rose to about 80%, indicating a heated market sentiment and the transition into a Fear of Missing Out (FOMO) phase.
The prevailing market atmosphere is characterized by investors displaying a sense of urgency to capitalize on potential gains, leading to more aggressive positioning. This sentiment aligns with the typical characteristics of the FOMO phase, where investors rush to take positions or expand their holdings in a rapidly rising market.
The Rally Continues with Full Force
The activity in option trading and the notable increase in bullish sentiment are significant components of the ongoing rally that has led Bitcoin to new highs this year. As Bitcoin continues to attract attention and investment, the options market reflects the growing optimism and speculative fervor surrounding the largest cryptocurrency.
Current data shows BTC trading at $63,468, up 2.43% in the last 24 hours. The data indicates that with this rise, the largest cryptocurrency has increased its gains to 23.55% over the last 7 days and 47.87% over the last 30 days.
