Posted:
- BTC options trading volume grew significantly in December.
- Despite the small price drop, BTC accumulation remains strong.
The Bitcoin [BTC] The options market is experiencing a surge in activity, with monthly trading volume reaching record highs on major crypto derivatives exchanges, data from The data of the block dashboard has been revealed.
BTC monthly options trading volume is at an all-time high and currently stands at $38 billion, up 5% from the $36 billion recorded in November. On a year-over-year basis, the coin’s monthly options trading volume has increased by 89%.
Deribit’s $28 billion makes up 8% of its total monthly trading volume. It is followed by OKX, which has seen a trading volume of $4.35 billion. Binance ranks third with a monthly trading volume of $3.23 billion.
Source: Het Blok
What does this mean?
The increase in BTC options trading volume over the past month signals the entry of new traders into the market. These newcomers open positions through options contracts, confirming increased market activity and the presence of high liquidity.
At the time of writing, BTC exchanged hands at $42,696. According to data from CoinMarketCapits value has increased by 12% in the past month.
The rise in options trading volume of the coin, along with the growth in its price, is strengthening the current momentum. This suggests that traders are placing bets in favor of a continued price increase.
Similar sentiments persisted in the currency’s futures market, AMBCrypto found.
According to data from Mint glassOpen interest on BTC futures has risen 12% since the beginning of the month. A review of funding rates on the exchanges showed that traders have only placed a bet in favor of sustained price growth since the start of the general market rally in October.
Source: Coinglass
BTC on a weekly chart
Despite the 3% price drop seen over the past week, coin accumulation remains strong, evidenced by BTC price movements on a weekly chart.
Read Bitcoin’s [BTC] Price forecast 2023-24
For example, the coin’s main momentum indicator, the Relative Strength Index (RSI), was 72.46. Similarly, the Money Flow Index (MFI) stood at 83.2. At these values, BTC buying pressure outweighed the coin sell-off.
Also, the coin’s Chaikin Money Flow (CMF) confirmed the steady inflow of liquidity to the BTC market. At the time of writing, this indicator was 0.13.
Source: BTC/USD on TradingView