Bitcoin on-chain and derivatives data suggests market optimism: analyst

The bitcoin price is currently holding above the $60,000 mark amid optimistic on-chain and derivatives market signals.

CryptoQuant charts show that bitcoin exchange reserves on centralized exchanges in August have fallen to a multi-year low. Since the end of July, bitcoin supply on exchanges has fallen from over 2.75 million to around 2.67 million — a 3% drop in the past 30 days.

Bitcoin exchange reserves on centralized exchanges have plummeted since the end of July. Image: CryptoQuant.

The data also show a notable 11% drop in bitcoin supply on centralized exchanges since the start of the year. This has occurred as bitcoin's price has increased by almost 43% since the beginning of January. Fewer coins on exchanges generally weaken supply-side pressures and support the potential for price appreciation.

Bitcoin exchange reserves are now at a multi-year low. Image: CryptoQuant.

Optimistic options market indicators

SynFutures co-founder Rachel Lin outlined derivatives market indicators that suggest traders are positioning for bullish bitcoin price movements. "On the derivatives front, market sentiment remains bullish. For bitcoin, the highest open interest is on the $100,000 December expiry call option," Lin told The Block.

Deribit metrics for all upcoming expiries show the largest concentration of options being calls at $100,000 and $105,000. The data also shows the top options contract by trading volume in the past 24 hours is for end-of-month expiry calls at a strike price of $75,000.

Lin also added that Ethereum's derivatives market is similarly optimistic, with the highest open interest being the $4,000 strike price September expiry call option, followed by the $6,000 strike price December call.

Lin also noted a significant lack of put options in the open interest distribution. "Notably, the top 10 open interest for bitcoin and Ethereum are all call options, with no significant put options," she said.