Bitcoin’s Bullish Surge: Call-Put Skew Hits 31-Month High, Ignites Frenzy

"Bitcoin's Price Surge Triggers Shift in Options Trading Strategy as Investors Seek Leveraged Upside Exposure"

Call-Put Skew Indicates Bullish Outlook for Bitcoin

On a day when Bitcoin’s price soared past $36,800, driven by growing optimism surrounding spot ETFs, there was a notable spike in the call-put skew. This surge prompted investors to halt the selling of calls above the spot price, a common strategy for generating yields on coin holdings. Instead, speculators turned to purchasing call options, seeking leveraged upside exposure.

This shift in behavior has resulted in market makers finding themselves with a significant net short exposure above $36,000. In order to rebalance their positions and return to market neutrality, market makers are expected to buy Bitcoin, potentially fueling an accelerated rally.

Looking ahead, the call-put skews for longer durations suggest a continued bias towards Bitcoin strength over the next two, three, and six months. This prediction is based on the recent surge in traders purchasing call options, which has led to a bullish bias exceeding 10% – a 31-month high according to Amberdata. The increased demand for call options indicates a sustained bullish sentiment towards Bitcoin in the coming months.

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Martin Reid

Martin Reid

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