The cryptocurrency community had looked forward to this time for much excitement, as it was predicted by some crypto investment experts and analysts that the impact of the BTC halving would be felt after the month of June. However, there has been consistent growth in the number of Bitcoin option contracts that are set to expire, resulting into largest number of BTC option traders having their contracts expiry date before the close of June, precisely 26th of June 2020.
In a piece of information shared by a leading crypto data analysis and trade execution platform, Skew, it was said that there has been a continuous increase in the number of BTC contracts slated to expire on the 26th of June, which amounts to a figure of about 84,000.
The constant rise and fall in the number of BTCs throughout the month of May were regarded as an opportune time by investors as Calls took precedence in the market. Interestingly, the Put/Call ratio sunk, leaving traders with no other options than to buy more call options.
Image Source: Skew
The Put/Call ratio as at the time of compiling this report stood at 0.42, which indicates that traders are buying lesser puts than calls. Nevertheless, an unexpected upsurge in the volume between the 5th and 6th of June was witnessed, putting the ratio at 0.95 and it has since the time spiked to 1.25 on the 7th of June.
The rise in volume indicates that the volume of Put option is strongly recovering against Call option. The Put option is defined as an option which allows to sell assets at an agreed price on or before a specific date.
Meanwhile, the current rise experienced could be an indication that traders are becoming partially pessimistic about the market movement and are trying to dodge unforeseen selloffs that might later rock the market.
Although Bitcoin has been making efforts to breach its price, with resistance around the $10K level, it had however made seven attempts in the past six months and have slided back almost immediately on each attempt, the price of Bitcoin which is currently at $9,683.81 which is about an inch closer to $10k.