Traders bet big with $63 billion in Bitcoin options

The bitcoin derivatives market is entering a new phase of euphoria. Open interest in Bitcoin options reaches 63 billion, driven by massive bullish positions, according to CoinGlass. Investors are now targeting strike prices between $120,000 and $140,000, revealing marked optimism

Record volumes on Bitcoin options reflecting increased confidence

Deribit concentrates 80% of the crypto options market with 50 billion in open interest, a historic high reached. This figure reflects intense activity among traders, who are increasing their bets on short-term volatility. In market parlance, such a level of open interest reflects massive engagement, often a harbinger of large price movements.

$100,000 puts are gaining popularity, showing a growing need for strategic hedging. The imbalance persists: call options largely dominate, a sign that traders are betting on an upcoming surge.

Strikes at $120,000 and above capture attention

After a decline in bitcoin and Ethereum, the largest open positions are now concentrated between $120,000 and $140,000, well above the current price of bitcoin, around $111,000, extending a period of volatility marked by the recent flash crash. More than 2 billion dollars are positioned at each of these levels, a strong signal sent by the market: bullish conviction is deep and extends over several time frames.

Luuk Strijers, CEO of Deribitspecifies that despite the rise of “puts” in certain areas, activity around calls at 120K and beyond is intensifying, indicating that investors are seeking to benefit from an explosive rise or to protect themselves from extreme volatility. In other words, the market is preparing for a new phase of tension, potentially on the rise.

$5.1 billion in Bitcoin options set to expire

This Friday, approximately $5.1 billion worth of Bitcoin options are set to expire on Deribit.
The put/call ratio of 1.03 shows relatively balanced positioning: sellers of bullish and bearish contracts almost neutralize each other. The maximum pain point, i.e. the price where the majority of Bitcoin options lose value, is estimated at $114,000.

In other words, the market could hover around this level before expiration, while the dust settles. But beyond this tactical game, the message is clear: crypto derivatives operators are repositioning themselves on a scenario of sustainable recovery of BTC, potentially towards new records.