Bitcoin $100K Call Options Soar to Nearly $1B in Open Interest

Bitcoin’s (BTC) market sentiment remains firmly bullish as traders on Deribit, one of the largest crypto options exchanges, have locked in nearly $1 billion in call options at a $100,000 strike price. This trend signals strong confidence in BTC hitting six figures by the end of 2024, despite current market volatility.

According to Deribit Metrics, as of today, the dollar value of open interest in $100,000 call options stands at over $993 million, making it the most popular Bitcoin option on the platform. The second most popular option is the $70,000 call, with open interest exceeding $800 million. Together, these call options represent over 50% of the total $14.15 billion BTC options open interest on Deribit.

Want to explore Deribit? Click here to read FXCOINZ full review.

Bullish Sentiment Explained

The surge in $100,000 call options indicates traders are anticipating a potential rally in Bitcoin prices before the year’s end. Call options give buyers the right, but not the obligation, to purchase BTC at a predetermined price before the contract’s expiration. Out-of-the-money call options, such as the $100,000 strike, are relatively cheaper and present an attractive bet for those expecting a substantial upward price movement.

Despite Bitcoin trading below $70,000, the bullish sentiment is fueled by a mix of favorable market events. These include Bitcoin’s halving, increasing adoption by institutional investors, and growing regulatory clarity in various global markets. Additionally, the potential for further rate cuts by the U.S. Federal Reserve and looming economic uncertainty adds to the appeal of Bitcoin as a store of value, driving up demand for call options.

U.S. Elections and BTC Options

Traders are also focused on the U.S. elections, set for Nov. 8. BTC options expiring on election day have an open interest of $938 million, with $117 million concentrated in the $45,000 strike put options. The popularity of the $45,000 puts suggests some traders are hedging against potential downside risks as election results could spark market volatility.

Historically, election results have had significant impacts on market behavior. Uncertainty often leads to protective positions such as put options, where traders purchase downside protection against price drops. However, the interest in call options with December expiry, particularly at the $100,000 strike, shows a contrasting belief in a potential year-end rally for BTC.

Polymarket’s Take: Caution Among Some Traders

While many on Deribit are betting on Bitcoin reaching $100,000, traders on decentralized betting platform Polymarket are more cautious. Data shows that only 15% of traders believe BTC will hit the $100,000 mark by the end of the year. This divergence reflects the varying levels of optimism among market participants, with some pricing in the possibility of slower market growth.

Conclusion: A Year-End Rally for Bitcoin?

The open interest in BTC’s $100,000 call options on Deribit reflects growing optimism among traders about Bitcoin’s potential to soar past six figures by the end of 2024. While the market remains divided, factors such as institutional adoption, macroeconomic uncertainty, and Bitcoin’s historical performance post-halving could push prices higher. The outcome of the U.S. elections and other global events will play a significant role in determining whether Bitcoin hits this milestone.

For traders, these bullish bets provide an exciting opportunity to capitalize on Bitcoin’s long-term growth prospects. However, as with all market activities, it’s essential to stay informed and prepared for potential volatility as key economic data and events unfold.