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Bitcoin options volume rises to 8.8 bn – Will January 29 be D-Day?

  • Bitcoin options volume on major exchanges is rising to $8.8 billion, pointing to a new all-time high.
  • According to analyst Willy Woo, more and more high-net-capital investors are entering the market.

Bitcoin is trending sideways after retesting the $40,000 mark last Friday and continues to show high volatility. Within the last 24 hours, the Bitcoin price has increased by 3.23% to a price of $36,090. The market capitalization has fallen to $673 billion and Bitcoin dominance to 66.3%.

Will January 29 become D-Day for Bitcoin?

As data from Deribit shows, 29 January could be a seminal day for Bitcoin in the coming weeks. 45% of all bitcoin options expire on 29 January. This is once again significantly more than the previous ATH of 25 December 2020, when there was the largest expiry of Bitcoin options to date, with a volume of $2.4 billion. However, according to the latest data from Deribit, there are 94,060 bitcoins on the expiry calendar for 29 January.

This large volume shows that there is an unusually high concentration that could have a strong impact on the BTC price. However, the positive news is that the data is bullish. For example, there are quite a few call options at the $46,000 level and only a few put options below $28,000. However, these are considered worthless as they are outside the current price trend.

Another important indicator with regard to this is delta skew, which compares the call and put options. For example, a delta skew of 10% indicates that the call options are trading at a premium and therefore more expensive than bearish or neutral put options. A negative delta skew indicates that traders are bearish. At the moment, the delta skew is above 20, indicating bullish investor behaviour.

Source: httpss://genesisvolatility.io/

According to available data, the last time bearish sentiment occurred was on 10 January 2021, when Bitcoin fell more than 20% in price. The sharp rise in price to the new all-time high near USD 42,000 has wiped out many put options, so the bulls currently have the upper hand and therefore a price rise is likely in the coming weeks.

Capital-rich investors enter the market

Also bullish data was recently presented by prominent on-chain analyst Willy Woo. He explained that more financially strong investors are currently entering the market. The data indicates that the number of Bitcoin whales owning 1,000 Bitcoins or more is steadily increasing. According to Woo, this development is unlike anything the community has seen before.

Whale spawning season is here (1,000 BTC or more). Very high net worth individuals are coming in, in droves. This cycle is unlike any we’ve seen before.

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Source: httpss://twitter.com/woonomic/status/1349753538130321410/photo/1

In addition, Glassnode states on Twitter that the number of bitcoins on exchanges has been steadily decreasing. This indicates that the whales are hodling their BTC:

The world has 47 million millionaires, 71% of them live in the US or EU. There’s only 14.9 million BTC in circulation, and only 4.1 million BTC are liquid and therefore able to be bought.

High-net-worth individuals just got notified they need an allocation. In my opinion, this is the reason why BTC rocketed past $23,000.

According to Woo, it is still not too late to buy bitcoin and enter the market.

About Author

Collin Brown

Collin is a Bitcoin investor of the early hour and a long-time trader in the crypto and forex market. He's fascinated by the complex possibilities of blockchain technology and tries to make matter accessible to everyone. His reports focus on developments about the technology for different cryptocurrencies.

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