Coin Metrics Study Shows Increased Call Option Interest as Post-Election Bitcoin (BTC) Trading Reaches Unprecedented Levels

A recent report from Coin Metrics highlights how post-election trading in bitcoin (BTC) has reached unprecedented levels, with the options market indicating strong investor optimism.

Bitcoin (BTC) options markets have seen unprecedented activity post-election, with the options market indicating strong investor optimism, according to a recent report by Coin Metrics.

Coin Metrics Analysis Highlights Surging Call Option Interest

Coin Metrics’ analysis delves into bitcoin’s rally following the recent U.S. election, which was accompanied by unprecedented trading volumes and new all-time highs for BTC. The report notes that bitcoin’s price surged from $67,000, trading up to nearly $90,000 within days, fueled by a key metric in options markets.

This surging call option activity, especially at higher price levels, indicates a prevailing bullish sentiment. Analysts at Coin Metrics suggest that the dramatic rise in open interest aligns with increased confidence in bitcoin’s regulatory future, given the extensive campaign discourse around digital asset regulation.

The Coin Metrics study also examines implied volatility (IV) as a metric reflecting market sentiment. Analysts observed a spike in bitcoin’s implied volatility leading up to Election Day, reflecting the general market uncertainty, which then sharply declined once the election results were confirmed.

This reduction in IV signaled a decrease in perceived risk, which Coin Metrics attributes to traders’ optimistic outlook on regulatory clarity following the election. The report suggests that the temporary increase in IV and subsequent drop mirrors the market’s broader sentiment shifts as election results unfolded.

Options market data in the Coin Metrics report shows a distinct skew toward call options expiring over the next several months at strike prices between $90,000 and $120,000. This positioning, according to Coin Metrics researchers, suggests that options traders expect bitcoin to appreciate further in the medium term.

Elevated call option interest in this price range reflects a significant shift toward bullishness among traders, reinforcing the view that participants are preparing for potential upward price movements in the coming months. Coin Metrics’ report concludes that the recent election’s impact on bitcoin markets is likely twofold: an immediate response to perceived regulatory clarity and a sustained bullish outlook as traders position for future price increases.

While enthusiasm around the election has fueled a price surge, analysts note that it remains to be seen if this momentum will hold. The options market data, however, suggests a