Bitcoin trading volume and exchange rates have been useful metrics in determining the market’s capacity for growth, and the latest numbers on popular cryptocurrency exchanges showed a new turn of events. On December 16, Skew pointed out that there was an unusual proportion of puts trading over the weekend on Deribit.
The general trend on Deribit usually leans towards more call trades, which conveys a sense of trust in the market. Since the 14th of December, the put calls increased to 73 percent while the calls reduced to the corresponding 27 percent. Just a day before, the call was at 72.5 percent, while the put calls were at 27.5 percent. The sudden flippening caught the eye of investors and users alike because it bucked the trend of the past month and a half.
The minimum calls were at 27.8 percent, with the maximum at 69.8 percent. At the same time, the puts rate was at 30.2 percent, while the maximum was a whopping 72.2 percent. The switch on Deribit came at a time when Bitcoin was trading for $7118 with a total market cap of $128.88 billion.
The 24-hour market volume of the world’s largest cryptocurrency was $17.19 billion after a 5.16 percent fall during the past seven days. The fall in the value came after investors claimed the Bitcoin market was not ready for a full-time investment, but rather, it was still in its nascent stages a decade after its inception.
Fear and Greed Index for Bitcoin
The community was hit again when the Bitcoin fear and greed index was at a factor of 21. The turn towards the red side on the index indicated ‘extreme fear.’
Deribit was also in the news recently when it partnered with Y-Combinator backed company to automate trading strategies for retail users. The tie-up was aimed to provide investors with trading algorithms developed by professional traders. The organization had also claimed reimbursements in November after admitting that abnormal trades might not be the best idea. An excerpt from the official Deribit blog stated:
“In the future, there may be more reasons for unexpected trade abnormalities, and their causes might not be directly the fault of an exchange. Therefore, reimbursement might not be the best course of action. Due to this, exchanges have to advance their risk management and have multiple tools to deal with these uncertainties in a way that is the most efficient and in the best interests of their clients.”
Disclaimer: The presented information is subjected to market conditions and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.
Never miss our daily cryptocurrency news, price analysis, tips, and stories. Join us on Telegram | Twitter or subscribe to our weekly Newsletter.