Key Points:
- Traders are pursuing call options as Bitcoin’s (BTC) value climbs.
- The $100,000 call option has emerged as the top choice, boasting a notional open interest nearing $1.2 billion.
Bullish strategies for Bitcoin options are witnessing a revival, alleviating panic indicators from the previous week. As BTC’s price has surged past $84,000 after testing lower levels below $75,000, the recovery aligns with turmoil in the bond market that seemingly prompted President Donald Trump to reverse his stance on tariffs shortly after imposing extensive import taxes on several countries, including China.
Late Friday, the Trump administration introduced new directives that exempted essential technological items, such as smartphones, from his 125% tariff on Chinese imports and a general 10% global tariff. However, Trump later contradicted this by indicating no tariff relief would be offered.
This price spike has propelled traders to favor upward movements in BTC through call options available on Deribit. A call option provides the buyer the right, but not the obligation, to acquire the underlying asset at a designated price by a specific date. Buyers of call options are inherently optimistic about market growth.
“Trump’s shift in tariff strategy turned the discourse from confrontation to submission, shifting market sentiment from capitulation to robust recovery,” said Deribit in a market summary.
The current interest has shifted toward upward calls, normalizing the options curve that previously demonstrated a bias toward bearish sentiments. According to Amberdata, this measure has been a reliable benchmark for market sentiment over the years.
The metrics indicate a rebound in the 30-, 60-, and 90-day skews to just above neutral levels, recovering from substantially negative positions observed a week prior, which reflects a reduction in market unease and a renewed appetite for upward calls. The seven-day measurement, while still negative, suggests a significantly lessened bearish posture compared to last week when it reached -14%.
As of now, the $100,000 call option stands as the most sought-after wager in the options market on Deribit, accounting for over 75% of the global options volume, achieving a cumulative notional open interest of almost $1.2 billion. This figure symbolizes the dollar value of the current active contracts available. Initially popular call options at $100,000 and $120,000 were derailed by a market dip, prompting traders to invest in the $80,000 put option last month.
The following graph illustrates the concentration of open options at strike prices ranging between $95,000 and $120,000, while the second most favored strategy remains the $70,000 put, having an open interest of $982 million.
