Bitcoin options data shows whales betting big — Will $50K BTC come in January?

Bitcoin (BTC) options open interest has hit a record high, reaching $20.5 billion on Dec. 7, indicating growing involvement of institutional investors in the cryptocurrency space. Unlike futures contracts, BTC options come with predetermined expiration prices, providing insights into traders’ expectations and market sentiment.

Deribit, a leading player in the Bitcoin options market, currently holds a substantial $2.05 billion open interest for options expiring on Jan. 26, boasting an impressive 90% market share. However, it’s important to note that a significant portion of these bets may lose their value as the deadline approaches.

The prospect of a spot exchange-traded fund (ETF) gaining regulatory approval has led to a resurgence of bullish bets in the market. Analysts are closely watching the $50,000 call options on Deribit, which have an open interest of $250 million, with collective valuation of $8.8 million at the current price of $44,000.

Looking at the put options, traders appear to have positioned themselves cautiously for the January expiry, with 97% of bets placed at $42,000 or lower. The article also highlights the potential impact of the SEC’s decision on the ETF proposal on the options market.

As of now, Bitcoin options open interest for Jan. 26 surpasses that of put options on Deribit by a factor of 2.6, indicating a greater demand for neutral-to-bullish strategies. Industry experts are estimating a 90% likelihood of ETF approval in 2024, which would have a significant impact on the options market.

In conclusion, the article emphasizes the need to carefully monitor market developments and regulatory decisions in the coming days, as these factors can greatly influence the options market. Additionally, it stresses that the article is for informational purposes only and does not constitute legal or investment advice. The views expressed are those of the author and do not necessarily reflect the views of Cointelegraph.

Join Our Social Group For Latest News Updates

WhatsApp Group

Leave a Reply

Your email address will not be published. Required fields are marked *