BTC Options Open Interest Exceeds Futures – The Three Phases of the Bitcoin Market Cycle

Data from Glassnode shows that for the first time, there are more Bitcoin options contracts than futures. Open interest (OI) on Bitcoin options contracts has reached a staggering $10.3 billion, compared to $10 billion for futures.

Source: Glassnode

The increase in Bitcoin options can be attributed to the fact that a large number of call option investors are speculating on higher Bitcoin prices. As more investors enter the cryptocurrency market, the demand for more complex financial instruments such as options increases. The rise in the price of bitcoin over the past few years has further fueled this trend, making the cryptocurrency an even more attractive investment for ordinary investors.

Elsewhere, data from CryptoQuant shows that high conversion rates on the network make miners the entities that earn the most money through traders’ activities.

Source: CryptoQuant

Long-Term Holders and the Three Phases of the Bitcoin Market Cycle

Bitcoin market cycles are a topic of interest to investors and traders, and according to CryptoQuant data, the best way to analyze it is through the actual price of holders. In this article, we explore the different phases of the Bitcoin market cycle and focus on the behavior of long-term holders.

The first phase of the Bitcoin market cycle is the accumulation phase, during which the actual price for long-term holders increases steadily. This phase typically starts with a 1-3 year unspent transaction output (UTXO) age bracket. Other long-term holders tend to add to their balances during price increases, but do so more cautiously.

Long-Term Holders and the Three Phases of the Bitcoin Market Cycle

Source: CryptoQuant

The second phase of the Bitcoin market cycle is the adoption phase, which is the most valuable area of ​​the market. This stage is characterized by the return of confidence to the market, and the disappearance of the fear caused by the previous decline. The length of the previous bearish phase and the psychology of the holders play a big role in determining how long this phase will last.

The third and final phase of the Bitcoin market cycle is the greedy euphoria, which occurs after a period of acceptance and profit by the majority of holders. During this time, long-term holders start allocating their BTC, leading to the possibility of selling pressure. New investors or beginners often begin the accumulation phase around this time, dreaming of another rally.

Currently, the Bitcoin market cycle needs more investors and new BTC addresses to continue growing. The UTXO age group of 2-3 years is still strong and intends to further increase its holdings. While the 10-year group has also increased its balances over the past few weeks, more interest from other groups is needed for a bull market to emerge. The length of the adoption phase is closely related to the behavior and status of the short-term holder.

Mr. teacher

according to Kyptos


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