Bitcoin Put-to-Call Ratio in the Lower Range Despite Sudden Price Plunge

KEY TAKEAWAYS

  • The put-to-call options open interest ratio fell to 0.40, suggesting that a bullish sentiment is building up in the Bitcoin market.
  • The open interest of call options on CME has grown significantly. CME put-to-call ratio reached 1:45 as of Jun 11.

A bullish sentiment seems to be building up in the Bitcoin markets. According to Skew, the put-call options open interest ratio fell to 0.40 in June, the lowest since March 24. The put-call ratio offers a rough gauge of the overall market sentiment. A lower ratio indicates that more people are buying calls than puts, which is often perceived as a bullish signal.

Source: Skew

The CME Put vs. Calls Open Interest Evolution below presents a fuller picture of the general trend. It exhibits a significant growth of call options and a growing skew to the bullish side since beginning of the year. Ecoinometrics reports a 1:62 put-call ratio based on the CME disclosure on June 11.

However, the market has since witnessed a sudden $800 price drop on June 11 evening (Asia time), to which the options market responded swiftly. We re-evaluate the figure based on the latest CME disclosure. The outstanding put-call ratio has bounced to 1:45 as of June 11 close, but still remains in the incredibly low range.

Source: Ecoinometrics

The thriving markets of CME, one of the key players in cash settled Bitcoin futures and options, allude to institutional investors’ expressed interests in cryptocurrency. Not to mention crypto derivatives trading volume skyrocketed to $602 billion in May, setting a new historical high, according to a report by CryptoCompare.