Analysis: Active Bitcoin long contract positions are significantly higher than short contracts, indicating bullish market sentiment

On Monday that QCP Capital said in a report: "From last Friday to the weekend, the volatility and funding rate of Bitcoin have reversed and rebounded, and we have seen some bullish follow-up. The BTC risk reversal has turned positive (bullish options are more expensive than bearish options), and demand for bullish options for BTC expiring in September at $75,000 and $100,000 has reappeared."

Off-exchange trading institution Paradigm also made similar observations on Monday, stating that demand for out-of-the-money (OTM) call options has increased, which are call options with a strike price far above the current market price of Bitcoin.

It said: "The options market seems to expect a short-term rise earlier this morning. BTC and ETH trading on Paradigm are the highest, including large-scale purchases of OTM call options. We noticed that the buyer of a call option worth $200,000 expiring in March 2025 closed their position and bought an option worth $85,000 expiring in July 2024."

Deribit's data shows that traders have locked in call options with a strike price of $100,000 and different maturities, with a total nominal open interest of over $688 million, which is the highest among all options on the exchange. (CoinDesk)