Ryze Recap 6/16: Dormant Bitcoin Holdings at 4 Year High, Indicating Bullish Outlook
Plus, Bitcoin Options Volume Up Over 950%
It’s Tuesday, June 16. If you’re new here— Ryze Recaps is a daily newsletter covering the top stories that Bitcoiners need to know in 2 minutes or less.
We’ve got two brief stories for you today.
Dormant Bitcoin at 4 Year High, Indicating Bullish Sentiment
According to data from blockchain analytics firm Glassnode, >60% of all Bitcoin in circulation has not been moved in the last year, the highest since 2016. Bitcoin that hasn’t moved isn’t being used for transactions and hasn’t been sold. This indicates that more and more Bitcoiners are HODLing for the long-run.
Why it matters:
Investors with a bullish long-term outlook (HODLers) seem to have strong hands in the face of macroeconomic uncertainty and tremendous price volatility. In the last year, price has ranged from ~$3.8k to $13.8k. Despite this, most Bitcoin isn’t being moved.
A few weeks ago, the total amount of Bitcoin held on exchanges was at an 18-month low. Bitcoin not being held in exchanges is likely held in offline, cold-storage wallets for more security but less short-term liquidity. This also indicates that Bitcoin is viewed more as a long-term investment rather than a fast money play.
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Bitcoin Options Open Interest Up 10X This Month
According to data from Skew, Bitcoin options open interest— or the total value of outstanding options contracts, increased over 950% from $35M to $370M in the last month. Open interest on the CME, one of the world’s largest derivatives markets, is an indication of institutional interest in Bitcoin. Higher open interest, combined with high volume, is generally a sign of bullish sentiment.
Why it matters:
The CME launched options just earlier this year, but quickly clawed up over a fifth of the global Bitcoin options market. Most of the options volume is on Deribit, an exchange geared towards consumers and small funds. The CME, however, is dominated by institutional investors— hedge funds and other money managers. For more, check out last week’s recap on derivatives and institutional money.
That’s all for today! We’ll be back tomorrow with another Ryze Recap.