Bulls Dominate: Bitcoin Options Open Interest Soars to $63 Billion

The Bitcoin derivatives market is signaling renewed growth, with open interest (OI) in Bitcoin options reaching a record high of $63 billion, driven by rising strike prices, according to CoinGlass.

“OI also hit an all-time high of $50,000,000,000 on crypto options exchange Deribit, with $100,000 puts gaining traction,” the Coinbase-owned derivatives platform said Thursday.

Deribit is the largest cryptocurrency options exchange, accounting for approximately 80% of total OI volume. Open interest refers to the quantity or value of all outstanding options contracts that have not yet expired or been exercised.

Record highs signal high activity in the cryptocurrency derivatives market as traders brace for significant price movements, signaling increased confidence in Bitcoin's short-term direction.

Figure 1. BTC options OI hits record high. Source: Coinglass.

Bullish strike prices are currently prevalent

Deribit has seen OI rise at $100,000 strike prices, which are now around $2,170,000,000, with bears betting on Bitcoin to fall.

However, according to Deribit data, there is much more OI at higher strike prices: over $2,000,000,000 at strike prices of $120,000, $130,000 and $140,000.

When OI is concentrated at strike prices significantly above current levels, it indicates that traders are primarily betting on or hedging significant gains. This indicates strong bullish sentiment and expectations for further price growth.

“While put OI has risen at key downside strikes, there has been a notable increase in call activity around 120,000 and above, suggesting traders are bracing for potential upside volatility or gamma risk,” said Deribit CEO Luke Stryers.

$5,100,000,000 worth of Bitcoin options are set to expire.

Approximately $5,100,000,000 worth of Bitcoin options expire on Deribit on Friday. The put/call ratio is 1.03, meaning long and short sellers are on equal footing.

The maximum pain point is $114,000, the strike price at which most contracts will lose money.

“Positioning is balanced, with puts slightly outweighing calls. Traders are hedging downside risks but not preparing for a major selloff,” Deribit reports.

Source: cryptonews.net