Bitcoin Surging News: The Latest In Bitcoin News

  • November 1, 2023
  • 4 min read
Bitcoin Surging News: The Latest In Bitcoin News

We are excited to share some Bitcoin news with you! Keep reading for the cryptocurrency latest news.

What’s Bitcoin Surging News?

Bitcoin (BTC) is the first open-source and peer-to-peer digital cryptocurrency developed and launched by a group of unknown independent programmers called Satoshi Nakamoto in 2008. Bitcoin has no centralized servers used for issuance, transactions, and storage, as it uses a distributed network public database technology. Bitcoin issuance is limited to 21 million coins. 

Currently, the bitcoin news in the market is that the capitalization of Bitcoin exceeds $138 billion, which is the most popular class of digital currency. Buying and selling cryptocurrencies is available through special platforms of Bitcoin exchanges or ATMs. Stay with us for the cryptocurrency latest news.

Bitcoin Options Data Highlights The Belief Of Further Price Rise

Open interest in Bitcoin options has recently reached its highest level this year, but what is fueling this new bullish sentiment?

Recent rallies are rare in 2023, even considering Bitcoin’sBitcoin’s impressive 108% performance this year. Notably, the latest instance of such price action occurred on March 14, when Bitcoin rose from $20,750 to $26,000 in just two days, marking a 25.2% price increase.

Bitcoin surging news: It is worth noting the importance of the fact that a staggering 208,000 contracts changed hands in just two days. To put this into perspective, the previous peak, which occurred on August 18, saw a total of 132,000 contracts traded, but that was during a period in which the price of Bitcoin plummeted 10.7% from $29,090 to $25,980 in just two days.

Interestingly, Bitcoin options open interest, which measures outstanding contracts for each expiration, hit its highest level in over 12 months on October 26.

This increased activity has led some analysts to emphasize the potential risk of “gamma choke.” This theoretical analysis attempts to capture the need for options market makers to hedge their risk based on their likely exposure.

If BTCUSD moves higher to $35,750-36k, options dealers will need to buy $20m in spot BTC for every 1% upside move, which could cause explosiveness if we begin to move up toward those levels

According to estimates from Galaxy Research and Amberdata, BTC options market makers may need to hedge $40 million for every 2% positive move in the Bitcoin spot price. While this figure may seem substantial, it pales compared to Bitcoin’s staggering adjusted daily volume of $7.8 billion.

Another bitcoin surging news to consider when evaluating Bitcoin options volume and total open interest is that these instruments have been used primarily for hedging purposes or neutral or bullish strategies. To resolve this ambiguity, it is worth closely monitoring the difference in demand between call and put options.

In particular, between October 16 and 26, neutral to bullish call options predominated, with a ratio that remained systematically below 1. Consequently, the excessive volume observed on October 23 and 24 was biased towards purchase options.

However, the picture changed as investors increasingly sought protective put options, peaking in demand 68% higher on October 28. The metric recently moved to a neutral ratio of 1.10 on October 30, indicating balanced demand between puts and calls.

How confident are Bitcoin options traders?

To gauge whether options investors have become more confident as the price of Bitcoin held above $34,000 on October 30, one must analyze the 25% slope of the Bitcoin options delta. When traders anticipate a drop in the price of Bitcoin, the 25% slope of the delta tends to rise above 7%, while periods of high hype typically see it fall below -7%.

25% Slope Of 30-Day Bitcoin Options Delta. 

The 25% delta slope of Bitcoin options changed to a neutral position on October 24 after remaining in bullish territory for five consecutive days. However, as investors realized that the $33,500 support level was more resilient than anticipated, their confidence improved on October 27, causing the delta indicator to re-enter the bullish zone below -7%.

What stands out most in bitcoin surging news is the current negative bias of 13% after the price of Bitcoin rose 26.7% in the 15 days leading up to October 27. Normally, investors would look for protective puts to cover some of their gains, but this did not happen. Consequently, even if ETF expectations primarily drove the initial call option demand, the prevailing optimism has endured as Bitcoin soared above $34,000.

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Fatima Humayun

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