Key Takeaways:
- Bitcoin options open interest hits $63 billion, signaling confidence in price movement.
- Deribit reports record positioning, with significant bets placed on $140K Bitcoin price.
Bitcoin Options - Market sentiment remains balanced, with expiration of $5.1B in Bitcoin options this week.
Bitcoin options open interest has reached a monumental $63 billion, signaling a strong sentiment in the derivatives market. The figure highlights a rising number of traders positioning for considerable price movements in Bitcoin (BTC) over the near term.
The surge in open interest comes as traders have placed heavy bets on Bitcoin’s potential for higher prices, with significant open interest now concentrated around strike prices above $100,000. This suggests confidence in Bitcoin’s price appreciation despite ongoing market fluctuations.
Traders Prepare for Major Bitcoin Price Movements
Accordig to Deribit, the leading platform for cryptocurrency options, $50 billion in open interest is currently recorded, with traders placing sizable positions at elevated strike prices. Notably, open interest surpasses $2 billion at the $120,000, $130,000, and $140,000 strike prices. This suggests that the majority of traders are betting on Bitcoin’s upward movement, preparing for a potential bull run.
The rapid increase in Bitcoin options open interest is driven by the ongoing bullish market momentum. The positions also indicate that traders are positioning for high volatility in the upcoming trading sessions, with a notable concentration of bets on Bitcoin surpassing $120,000.
Balanced Market Sentiment as Bitcoin Options Expire
Bitcoin’s options market is seeing a balanced sentiment, with a near-equal distribution between put and call options. As of the latest reports, Deribit will see around $5.1 billion in options contracts expire this Friday.
The overall sentiment appears relatively neutral, with traders hedging against both potential upsides and downsides. The max pain point for these contracts sits at $114,000, meaning the majority of positions could close at a loss if Bitcoin fails to surpass this price point.
Despite the balanced market positioning, the heavy concentration of calls at $120,000 and above indicates traders’ strong expectations for Bitcoin to break these levels in the near future. The current price action is in line with the heightened bullish sentiment as Bitcoin recently saw a brief spike to $112,000 after softer U.S. inflation data.
