According to a report by CoinDesk, Paradigm, an over-the-counter institutional trading solution platform, stated that there has been an increase in activity of bullish Bitcoin (BTC) options in the options market following news of a criminal investigation by US law enforcement agencies into Binance. This indicates a sustained bullish sentiment.
Patrick Chu, Head of Institutional Sales at Paradigm, stated in an interview:
Market analyst Chang shared data showing that earlier on Wednesday (22nd), market participants traded 550 contracts of bullish Bitcoin options on Deribit, with a March 2024 expiration date and a strike price of $45,000. Buyers betting on a continued rebound in Bitcoin prices in the coming months paid a total of $1.5 million in premiums.
Overall, the trading prices of short-term and long-term call options remain higher than put options, with a positive skew in call-put skew values, indicating that the market expects Binance’s admission of guilt to not have a significant negative impact.
The market believes that US regulatory agencies have cleared the industry of fear and uncertainty, creating conditions for the approval of the first Bitcoin spot ETF in the United States.
According to Deribit’s data, 106,271 Bitcoin (BTC) options will expire and settle this Friday, with a notional value of approximately $3.88 billion, and the current major pain point is at $33,000.