Open interest (OI), in bitcoin (BTC), options, surpassed USD 1 Billion ahead of the halving. There has been an exponential rise across all major markets over the past week. The bitcoin put-to–call ratio is on the rise, which indicates some bearishness in market.
While this is not uncommon during bull runs in spot markets, rising interest in bitcoin options could indicate that large holders may be trying to hedge against the uncertain outcome of the halving which is just days away.
Data from the Crypto derivatives data provider Skew shows that open interest began to grow in May and has been growing steadily ever since. The most notable growth in open interest was observed on the EU-based derivatives market Deribit. This was followed by the Asia-based trading platform OKEx.
Another sign that traders are seeking protection is the rise in bitcoin’s put-to-call ratio. This basically means that more money is being placed on bitcoin’s price falling than on higher prices. This is generally considered a bearish sign for any market.