The Bitcoin (BTC) toll failed to boom through the $20,000 level this week, but multiple records related to volume and open up involvement were fabricated on the way up to $nineteen,484. One notable achievement was the open involvement on aggregated futures contracts reaching $7.four billion at derivatives exchanges.

BTC futures aggregate open interest. Source: Skew

Every bit depicted higher up, there has been a 110% increase over the by six months, and it is also worth noting that the Chicago Mercantile Exchange now holds over $1.1 billion of these contracts. This data is indisputable evidence of the growing institutional participation in BTC markets.

Volume soared to new highs, will BTC price follow?

The full cryptocurrency market volume also reached a tape high on Nov. 24. Some investors might infer that this is a bullish outcome, but information technology'south important to think that every trade has a buyer and a seller. Therefore, how can the entry of large sellers exist accounted as bullish?

Total cryptocurrencies daily volume, USD. Source: TradingView

The total volume on every spot exchange reached $285 billion this week but in that location is always the possibility that some of these exchanges may have inflated their volumes. Despite this, $285 billion represents an xi% increase compared to the March 13 peak.

Bitcoin options markets too established a new open up interest high yesterday. These are the contracts that a buyer pays upfront for either buying (calls) or selling (puts) at a predetermined price in the future.

BTC options aggregate open up interest. Source: Skew

Take detect how BTC options electric current $five billion open involvement represents a 316% increase from the $one.2 billion level just 6 months ago. Even though this includes both call and put options, this impressive liquidity increment is a positive event.

Options open interest deserves special attention

Higher open up interest tends to describe attending to new arbitrage desks and open doors for larger institutional clients. Still, to amend assess how professional traders are pricing to go on the current bull run, i should clarify the options 25% delta skew.

A positive 25% delta skew indicates put (sell) options toll more like call (buy) options, thus indicating bearish sentiment. On the other hand, a negative skew suggests bullishness.

BTC 1-month options 25% delta skew. Source: Skew

The above chart shows that the Nov. 24 effigy at -27.5% almost matches its all-fourth dimension low. Indisputably, this is an extremely bullish condition and the information indicates that options traders are unwilling to sell upside protection.

Therefore, fifty-fifty though the $20,000 level has yet to be broken, there is plenty reason to celebrate a good for you market with no signs of excessive leverage or diminished investor involvement.

The views and opinions expressed hither are solely those of the autho r and exercise not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. Yous should conduct your ain enquiry when making a determination.