- BTC options trading volume increased significantly in December.
- Despite the minor price decline, BTC accumulation remains strong.
The Bitcoin [BTC] The options market is witnessing a surge in activity, with monthly trading volume on major crypto derivatives exchanges hitting an all-time high, data shows The data of the block Dashboard displayed.
BTC's monthly options trading volume is at an all-time high and currently totals $38 billion, up 5% from November's $36 billion. Year-to-date, the coin’s monthly options trading volume has increased by 89%.
Deribit's $28 billion represents 8% of its total monthly trading volume. It is followed by OKX with a trading volume of $4.35 billion. Binance is in third place with a monthly trading volume of $3.23 billion.
Source: The Block
What does that mean?
The increase in BTC options trading volume over the last month indicates the entry of new traders into the market. These new market participants open positions through options contracts, confirming increased market activity and the presence of high liquidity.
At press time, BTC was trading at $42,696. According to data from CoinMarketCapits value has increased by 12% in the last month.
The increase in the coin's options trading volume as well as the rise in its price reinforces the current momentum. This suggests that traders are betting on a sustained price rally.
AMBCrypto noted that similar sentiments persisted in the coin’s futures market.
According to data from Coin jarSince the beginning of the month, open interest in BTC futures has increased by 12%. An assessment of funding rates on exchanges found that traders have only bet on continued price growth since the general market rally began in October.
Source: Coinglass
BTC on a weekly chart
Despite the 3% price decline observed last week, coin accumulation continues strongly, as shown by BTC price action readings on a weekly chart.
Read Bitcoins [BTC] Price prediction 2023-24
For example, the coin’s key momentum indicator Relative Strength Index (RSI) was at 72.46. Likewise, the Money Flow Index (MFI) was at 83.2. At these levels, BTC buying pressure exceeded coin selling.
The coin’s Chaikin Money Flow (CMF) also confirmed the steady inflow of liquidity into the BTC market. At press time, this indicator was 0.13.
Source: BTC/USD on TradingView
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