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  • Writer's pictureSarah Dixon

Bitcoin options open interest near 2021 peaks, will BTC break $31,300?


Bitcoin options open interest near 2021 peaks, will BTC break $31,300?
Bitcoin options open interest near 2021 peaks, will BTC break $31,300?

According to on-chain data from July 5th, the total open interest of Bitcoin options, including both call and put orders, rose to $14.87 billion on June 30th before decreasing to $10.74 billion on July 4th. This open interest was primarily held on top trading platforms such as Deribit, CME, and OKX, and was close to the all-time high of $15.06 billion recorded in October 2021 when Bitcoin prices reached an all-time high of over $69,000.


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Bitcoin options open interest near 2021 peaks, will BTC break $31,300? BTC Options At Near 2021 Peaks

Bitcoin traders remain optimistic about the future of the cryptocurrency, with open interest levels near the peak levels seen in October 2021. The strong performance of Bitcoin in the first half of 2023 has led to expectations of continued price increases. The recent surge in Bitcoin prices, reaching a new high of $31,300 in June 2023, could be interpreted as a sign of overall bullish sentiment, similar to the period before prices reached over $69,000 in November 2021. Bitcoin options open interest near 2021 peaks, will BTC break $31,300?


BTC price on July 5| Source: BTCUSDT on Binance, TradingView
BTC price on July 5| Source: BTCUSDT on Binance, TradingView

Across major crypto derivatives trading platforms, such as Deribit, the distribution of "call" and "put" Bitcoin options reveals a skew towards optimism. Currently, more than 65% of all Bitcoin options orders are "calls," indicating that traders expect prices to rise from spot rates. This translates to approximately 206,000 BTC orders being placed as "calls." Conversely, a minority of traders anticipate price contracts from spot rates towards $28,300 or lower in the coming months, with about 99,000 BTC options having been placed as "puts" to align with these expectations of worse prices.


Bitcoin Traders Bullish

Over the past 24 hours, trading patterns have shown that despite a 2% decrease in Bitcoin prices, the cryptocurrency has remained above the psychological threshold of $30,000. This has resulted in most options traders being bullish, with more "calls" than "puts" being observed. Options contracts are usually used by traders to mitigate risks, and an increase in "calls" could indicate that more BTC traders are optimistic about the coin's ability to surpass recent resistance levels.


Recent trends have revealed that options trading volumes on Deribit have been decreasing. After reaching a peak of $3.29 billion on October 16, 2021, participation levels have been shrinking over the past 20 months. Trading was suppressed throughout 2022 during the bear market, which saw Bitcoin drop below $16,000 in November 2022. However, options trading volumes have since increased, peaking at over $2.3 billion in March 2023, before dropping below the $1 billion level as of July 5.


Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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