Bitcoin's bullish trend was underscored on Thursday as the cryptocurrency's one-month call-put skew soared above 10%, a level not seen since April 2021, according to data from Amberdata. This rise in skew indicates that the demand for call options, which grant the right to purchase and reflect bullish sentiment, was exceeding that for put options.
The spike in the call-put skew occurred on the same day that Bitcoin's price surpassed $36,800, driven by optimism around spot ETFs. As a result of this surge, investors halted selling calls above the spot price, a common yield generation strategy on coin holdings. Instead, speculators sought to gain leveraged upside exposure by purchasing call options.
This shift in behavior has left market makers with a significant net short exposure over $36,000. To counterbalance this position and return to market neutrality, market makers are expected to buy Bitcoin, potentially fueling an accelerated rally.
Looking ahead, longer duration call-put skews predict that the bias for Bitcoin strength will persist for two, three, and six months. This prediction is based on the recent wave of traders purchasing call options, which has resulted in a bullish bias exceeding 10%, a 31-month high monitored by Amberdata. This increased demand for call options suggests sustained Bitcoin strength over the coming months.
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