Bitcoin Options Open Interest Hits All-Time High of $63 Billion

Bitcoin’s futures market displays a new bullish trend as the open interest for options has soared to a record high of $63 billion. This surge is predominantly fueled by bullish strike prices ranging from $120,000 to $140,000.

According to reports from CoinGlass, the open interest also recently reached $50 billion on Deribit, a major crypto options exchange. It was noted that puts at $100K are growing in popularity. With around 80% of total open interest on Deribit, which signifies the total number or value of outstanding options contracts, this increase indicates active trader engagement anticipating significant price movements in Bitcoin.

BTC options OI at record high. Source. BTC options OI at record high. Source. Coinglass

Bullish Strike Prices on the Rise

Deribit reports an increase in open interest at the $100,000 strike price, valued at approximately $2.17 billion, while there is considerably more open interest at even higher strike levels, over $2 billion for prices at $120,000, $130,000, and $140,000.

High concentration of open interest at elevated strike prices reflects traders’ predominant expectation of substantial price increases. As noted, significant bullish sentiment is prevalent alongside projections for Bitcoin’s ongoing appreciation.

“While put options have risen significantly at lower strike prices, there is a notable uptick in call activity around the $120K mark and higher, indicating that traders are preparing for potential upside volatility or gamma exposure,” said Luuk Strijers, CEO of Deribit.

Expiring Options Worth $5.1 Billion

On Friday, options valued at about $5.1 billion will expire on Deribit, with a put/call ratio recorded at 1.03, suggesting a balance between long and short contract sellers.

The max pain point sits at $114,000, which indicates the strike price where the most contracts are projected to incur losses.

“Overall positioning appears balanced, with a slight edge towards puts, indicating traders are hedging against downside risks but are not bracing for a major sell-off,” commented Deribit.