Bullish Bias Persists for Bitcoin (BTC) Alternative Markets: Caico

According to data from Caico, a bullish bias for Bitcoin options remains despite recent market volatility.

Last week, Bitcoin experienced volatility, briefly dipping below the $57,000 mark before recovering over the weekend as concerns over Fed interest rates eased.

Bullish Shift in the Bitcoin Options Market

Last week's decline in Bitcoin's price proved beneficial for options that expire at the end of May. Put options in the $57,000 to $60,000 range if the money is short-term, giving holders profitability amid macroeconomic headwinds.

Platts, which give holders the right to sell their underlying assets at a predetermined price, are based on derbits of 28% at the end of May 31. Traders holding these positions either hedged their portfolios or anticipated further declines in prices.

However, with the price of Bitcoin getting above $64,000, these options are no longer profitable, with call options in the $60,000 to $65,000 range returning to profitability. More than $600 million worth of call options with a strike price of $80,000 were left out of the money.

Despite this change, calls continue to outnumber volume, indicating a general bearish outlook among market participants. Looking ahead, Bitcoin options contracts expiring on September 27 are dominated by call options, with the $65,000 strike price the most popular choice.

This means that if Bitcoin is worth more than $65,000 at the end of September, more than $300 million worth of call options will be profitable.

Mem coins lead in leverage

Meanwhile, while the recent market correction has caused the value of many meme coins to drop, some of them have maintained their dominance among the top 30 altcoins by market capitalization.

Kaiko reports that Pepe (PEPE) and Dogwifhat (WIF) are characterized by leverage ratios that are twice as high as other altcoins. Following closely behind is the FIL token, FileCoin, which experienced the rally followed by Bitcoin Cash (BCH) following its merger with Solana in mid-February.

Derivatives markets have a significant impact on crypto prices, especially altcoins, due to the speculative behavior of traders. The ratio of open interest to market value shows the trading volume compared to the total value of the cryptocurrency. Higher ratio values ​​are determined primarily by trading in the underlying markets rather than other factors.