tl;dr
Bitcoin's surge past $100,000 has led options traders to hedge against potential losses by increasing demand for put options. Data from Coinglass shows rising open interest for put options with strike prices of $95,000, $100,000, $75,000, and $70,000, concentrated around early 2025 expirations. Howe...
Demand for Hedging Bitcoin Options Has Increased Over 24 Hours
Data from Coinglass shows rising open interest for put options with strike prices of $95,000, $100,000, $75,000, and $70,000, concentrated around early 2025 expirations. However, total open interest on puts remains lower than calls expiring within the same period on the Bitcoin options exchange Deibiti.
Total Bitcoin Options Open Interest from July to December 2024
Source: Coinglass
Bitcoin's Historic Surge to $100,000 Prompts Cautious Sentiment
The surge in Bitcoin's price has been attributed to optimism surrounding President-elect Donald Trump's appointment of a pro-crypto SEC chair and Putin's endorsement of the cryptocurrency. This rally has led to leveraged bullish positions and a near all-time high funding rate, a potential indicator of market corrections.
Bitcoin Options Trading Volume on Deribit
Source: Coinglass
A Short-Term Pullback?
Bitcoin's price has softened, dropping 3% over the past hour to trade above $98,000. Additionally, the Relative Strength Index (RSI) has dropped to 53, indicating a neutral position and potential sideways movement or an uncertain direction in the near term.
Bonus Content:
Sponsored links to crypto platforms in Europe
Demand for Hedging Bitcoin Options Has Increased Over 24 Hours
Data from Coinglass shows rising open interest for put options with strike prices of $95,000 and $100,000, and demand for lower strike prices, including $75,000 and $70,000, has also increased. These positions are largely concentrated around early 2025 expirations. However, on the Bitcoin options exchange Deibiti, the total open interest on puts remains significantly lower than that of calls expiring within the same period.
Total Bitcoin Options Open Interest from July to December 2024
Source: Coinglass
Bitcoin’s Historic Surge to $100,000
The rally adds to the nearly 50% surge Bitcoin has experienced since the election, and record inflows in Bitcoin ETFs. Meanwhile, leveraged bullish positions have also surged as traders capitalize on Bitcoin's momentum. The funding rate, a critical metric for measuring leverage in the crypto market, is nearing an all-time high.
Bitcoin Options Trading Volume on Deribit
Source: Coinglass
A Short-Term Pullback?
This pattern mirrors previous bull cycles, where sharp gains were followed by periods of consolidation or pullbacks. At the same time, Bitcoin’s Relative Strength Index (RSI) has dropped to 53, indicating a neutral position and potential sideways movement or an uncertain direction in the near term.
Bonus Content:
Sponsored links to crypto platforms in Europe