Bitcoin’s options market is amid its strongest bullish attitude recorded as the cryptocurrency price rallies to highs not seen in the last three years.
The six-month put-call skew, which represents the difference between prices claimed by put options and call options that expire every six months, fell to an all-time low of -21.6% on Thursday, as reported by the analytical service Skew.
The so-called “call option” gives its holder the opportunity, but not the obligation, to purchase the underlying asset at a price, predetermined on or before a certain date. A put option, on the other hand, gives the right to sell it.
Skew’s data indicates that the overall demand for call options, or bullish bets, is outperforming the net demand for puts, or bearish bets, by the largest margin on record. That is a clear sign of a strong bullish attitude on the market.
Bitcoin reached above $16,000 on Thursday and scored a high of $16,305 in early Friday, levels not seen in three years. Some analysts predict the cryptocurrency consolidation on recent gains in the next few weeks. After that, a move towards the $20,000 mark is expected.
The six-month put-call skew has consistently been below the zero mark over the past two years, indicating the confidence of investors in Bitcoin’s long-term potential. However, its value has never been so low.
