Bulls dominate as Bitcoin options open interest soars to $63B

Bitcoin derivatives markets are signaling caller bullishness with Bitcoin options unfastened involvement (OI) astatine a grounds precocious of $63 billion, dominated by higher onslaught prices, according to Coinglass.

OI besides deed an all-time precocious of $50 cardinal connected crypto options speech Deribit, “with puts astatine $100K gaining traction,” reported the Coinbase-owned derivatives level connected Thursday. 

Deribit is the world’s largest crypto options exchange, with astir 80% of the full OI. Open involvement refers to the fig oregon worth of each outstanding options contracts that person yet to expire oregon beryllium settled.

Record highs mean precocious engagement successful crypto derivatives markets arsenic traders are actively positioning for large terms moves, suggesting heightened condemnation astir Bitcoin’s near-term direction.

BTC options OI astatine grounds high. Source. Coinglass

Bullish onslaught prices dominate

Deribit noted an summation successful OI astatine the $100,000 onslaught prices, which is present astir $2.17 billion, with bears betting connected a autumn successful Bitcoin. 

However, determination is overmuch much OI astatine higher onslaught prices, with much than $2 cardinal astatine $120,000, $130,000 and $140,000 onslaught prices, according to Deribit. 

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When OI concentrates astatine onslaught prices good supra existent levels, it indicates traders are predominantly betting connected oregon hedging for important upside. This suggests beardown bullish sentiment and expectations for continued terms appreciation.

“While enactment OI has accrued astatine cardinal downside strikes, there’s notable telephone enactment gathering astir 120K and above, suggesting traders are positioning for imaginable upside volatility oregon gamma exposure,” said Luuk Strijers, CEO of Deribit.

$5.1B of Bitcoin options to expire

Around $5.1 cardinal worthy of BTC (BTC) options volition expire contiguous connected Deribit. They person a put/call ratio of 1.03, which means agelong and abbreviated declaration sellers are evenly matched. 

There is simply a max symptom constituent of $114,000, the onslaught terms astatine which astir contracts volition marque a loss.

“Positioning is balanced, with puts outweighing calls a bit. Traders are hedging downside but not positioning for a large sell-off,” reported Deribit. 

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