Bitcoin’s Shift: $100K Call Surpasses $120K Bet in Popularity on Deribit

Traders are now favoring a more conservative investment approach after recent market fluctuations, with the $100K bitcoin options becoming the top choice.

What to know:

• The recent downturn in the crypto market has led traders to reassess their bullish expectations, shifting the most popular bitcoin options bet from the $120K call to the $100K call.
• The $100K call now has a notional open interest of $1.55 billion versus $1.33 billion in the $120K call.
• Pricing remains bullish in favor of call options after May, with total call options open valued at over $16 billion.

The recent crypto market downturn has caused the once-popular $120,000 bitcoin options bet to lose its crown to the $100,000 bet in a sign that traders are reassessing their bullish expectations. At press time, the $100,000 call was the most popular BTC options contract on the exchange, boasting a notional open interest of $1.55 billion.

Meanwhile, the $120,000 call, previously the leader up until last month, stood at the number two position, with a notional open interest of $1.33 billion.

A call gives the purchaser the right but not the obligation to purchase the underlying asset at a predetermined price at a later date. Hence, a significant accumulation of open interest in higher strike out-of-the-money calls reflects bullish expectations.

The shift lower in the most preferred call to the $100,000 strike likely shows traders opting for a more conservative bet in the wake of the recent price crash beneath $80,000, signaling a broader reassessment of bullish sentiment.

The 25-delta risk reversals show a bias for protective put options, suggesting concerns over continued market declines.

Despite recent market challenges, the pricing remains bullish for call options, with a total open value of call options nearly double that of put options.