January 19, 2022

Data show bulls are in charge of this month’s $3.2B Bitcoin options expiry

1200 aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDIvM2U2YjY4MDgtM2FjOS00YTg0LWExYzQtZjQ1ZjgzMTU1OGJhLmpwZw

After a 160% increase over the past 3 months, the open interest on Bitcoin (BTC) options reached a new record-high at $12 billion. While this number might seem unusually high, it makes sense that the figure would increase as Bitcoin’s market capitalization surpassed $1 trillion. 

Deribit BTC options open interest in USD. Source: laevitas.ch

Although Friday’s $3.2 billion expiry could negatively impact the market, these options are split among calls (neutral-to-bullish) and the more bearish put options.

As shown in the chart above, Deribit exchange leads the market by holding an 85% market share. For the Feb. 26 expiry, 58,500 BTC contracts remain open and this is equivalent to $3.2 billion.

Before jumping to conclusions on whether the outcome might be bullish or bearish, it’s essential to take a more detailed view of the potential buy and sell pressure nearing expiry.

Paying for a $38,000 put (sell) option might have made sense three weeks ago, but this trade is now worthless. Therefore, to correctly assess the impact of the upcoming expiry, those should be Title: Data show bulls are in charge of this month’s $3.2B Bitcoin options expiry
Sourced From: cointelegraph.com/news/data-show-bulls-are-in-charge-of-this-month-s-3-2b-bitcoin-options-expiry
Published Date: Fri, 19 Feb 2021 21:20:54 +0000