According to the data from Deribit, the largest cryptocurrency options exchange in the world, the put-call ratio in Bitcoin options indicates a bullish market sentiment in the spring of 2024. It is noted that the ratio of open positions of call options is rapidly increasing, suggesting that investors are predicting an increase in the price of the largest cryptocurrency in the early months of 2024.
Luuk Strijers, the Commercial Director of Deribit, stated that the Bitcoin put-call ratio fluctuated between 0.4 and 0.5 this year. The decrease in the ratio for long-term futures indicates that customers are using call options more frequently to take positions for the March and June 2024 expirations. This trend indicates a bullish sentiment in the market for longer-term futures, and the number of call options is increasing compared to put options.
If the volume of call options is higher than that of put options and a put-call ratio below a certain level is observed, it is considered a bullish market signal. At the time of writing the article, the put-call ratio on Deribit had dropped to 0.43. Additionally, Deribit’s analysis aligns with the option analysis of GreeksLive, which indicates that the put-call ratio is low and that the main trades of this week are bullish.
Furthermore, Strijers noted that November is one of the most active months for Deribit and mentioned an increase in activity in the crypto derivatives markets. He expressed that this increased activity reflects the volume and opportunities in the market.
Options are derivative contracts that give investors the right to buy or sell an underlying asset at a predetermined price on or before a specific date. The purchase of call options is approached from a bullish perspective in the market, while buying put options represents a bearish outlook.
