Bitcoin has been unable to surpass the psychological resistance level of $30,000, leading some to believe that the rally may soon come to an end since futures OI has been flat throughout the year.
However, the options market tells a different story. Glassnode’s latest chart shows that the Open Interest in Bitcoin Options contracts has reached $10.3 billion, surpassing the futures contracts for the first time ever. A high number of call options being taken for Bitcoin indicates that many market participants are bullish on its price trajectory and are expecting a surge.
For the first time, the amount of Open Interest in #Bitcoin Options contracts ($10.3B) has surpassed that held in Futures contracts ($10.0B).
Futures OI has been relatively flat in 2023.
This results from significant call option buys, as investors start to speculate on higher… pic.twitter.com/JtKM0uQwZP
— glassnode (@glassnode) April 8, 2023
The bullish narrative is further validated by the 28.39% increase in trading volume over the past 24 hours and Bitcoin’s 2% surge in price. On a YTD basis, Bitcoin has recorded over 73% price gains.
Glassnode’s data shows significant accumulation of Bitcoin in recent times, with the number of non-zero addresses skyrocketing to nearly 45.5 million. Santiment also observed a rising rate of Bitcoin “hodlers,” indicating that traders are increasingly content keeping their bags unmoved for the long-term. The Bitcoin network hash rate, mining difficulty, and miner revenue have also seen significant growth since the beginning of the year, providing much-needed respite after a rocky 2022.
