Bitcoin options point to a return of bullish sentiment. That’s apparent from a special influx of wagers aimed at crossing the $100,000 threshold. This overall trend is clear even looking at Deribit, the largest platform that makes up more than 75% of global options activity. The $100,000 call option has been the most popular since, with more investors favoring this strike. It today stands at a staggering cumulative notional open interest of $1.2 billion and counting.
The $100,000 call option is a very aggressive bet on the price of Bitcoin. It essentially wagers that Bitcoin will reach $100,000 by the time the contract expires. The notional figure of $1.2 billion indicates the total U.S. dollar value of all active contracts for this particular option. This figure represents historic levels of market participation and confidence. This resurgence of upside calls has been a huge factor in normalizing this options skew.
In fact, earlier this year there was a considerable bull sentiment in calls $100,000 OI. A recent market downturn prompted them to pivot their focus to the $80,000 put option last month. Today, traders are at it again chasing upside in BTC via call option contracts. This trend marks a seismic change in overall market sentiment and a rebirth of confidence in Bitcoin’s long-term ability to appreciate in value.
The options skew, which was up to showing strong put bias or downside fears before, has rebounded back to just above zero. The 30-, 60- and 90-day skews have all seen a positive correction. This move is a clear sign of bullish sentiment getting stabilized with panicking bears exiting the market. All in all, the $100,000 call is the most popular play on Deribit, and it has the highest amount of open interest.
For one, traders are developing a second life for the still-popular $100,000 call option. This is indicative of a larger trend of market participants actively looking for upside exposure to Bitcoin via call options. The $100,000 call option has gained considerable open interest. This latest increase cements its place as one of the most closely watched indicators of market mood.
