Head of Derivatives at Bitfinex, Jag Kooner, has revealed a notable concentration of call options for Bitcoin set to expire at the end of March, with a strike price of $70,000. This data indicates a growing optimism surrounding Bitcoin’s value.

According to Kooner, the put-call ratio, a key market sentiment indicator, has consistently remained below 0.6 for the first time in six months, signaling a bullish outlook among traders.

The global put-call ratio for Bitcoin options currently stands at 0.6, indicating a preference for calls over puts. A ratio below 1 is a bullish signal, while a ratio above 1 would suggest bearish sentiment.

Implied volatility in the options market has notably decreased, leading to reduced option premiums and making it more cost-effective for traders to enter positions. Deribit’s implied volatility index for Bitcoin has dropped from 77% to 72% in the past 24 hours, reflecting lower volatility expectations among traders.

Options are financial derivatives that provide traders with the right, but not the obligation, to buy or sell an underlying asset at a predetermined price before a specified date. Call options grant the right to buy, while put options offer the right to sell, with each reflecting a different market view.

As traders anticipate less price fluctuation in the near future, the pricing of options contracts may be affected. This concentration of call options at the $70,000 strike price suggests a positive sentiment towards Bitcoin’s potential value increase.

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