Latest news with #Deribit
Forbes
17 hours ago
- Business
- Forbes
Bullish Sentiment Surges As Bitcoin Open Interest Sets New Record
Investor sentiment surrounding bitcoin has spiked recently as the total notional interest in futures tied to this digital currency has climbed, reaching an all-time high over the last several days, according to market analyst Greg Magadini. The fact that open interest in these derivatives contracts rose to record levels while bitcoin prices were trending upward is a sign that markets are feeling quite bullish about the digital currency, Magadini, director of derivatives for digital asset data provider Amberdata, said via Telegram. The chart below shows bitcoin's open interest climbing to an all-time high: Past that, the open interest for futures contracts in the broader crypto market have also been showing quite a bit of strength recently, pushing to new records, Magadini added. The chart depicted below helps illustrate these developments in the overall digital currency markets: On Friday, May 30, billions of dollars' worth of bitcoin options are set to expire, according to Deribit data sourced from a recent CoinDesk article, and multiple analysts commented on the potential implications of this development. 'We can see that Friday's expiration has a large over-hang of positive dealer gamma at $110k the BTC all-time-high area,' Magadini stated via email. 'This means that option market-makers were selling BTC at this level... Which can help explain the sentiment for prices stalling out here.' The chart below illustrates this situation: 'That said looking at all expirations, peak gamma for BTC currently stands around $121k suggesting some more upside to be found, although we'll likely see price quietly move higher without a strong catalyst for an explosive move higher,' said Magadini, commenting on the digital currency's outlook. This chart helps depict the situation: Data on the gamma profile of crypto dealers Amberdata Paul Howard, senior director at crypto trading firm Wincent, also chimed in. 'Bitcoin volatility has remained near historic lows, but with the upcoming options expiry, we could see implied volatility begin to climb toward the 45 level,' he stated via email. 'Notably, the price gap below the $90,000 mark (previously identified) has now been filled, reinforcing the bullish case for continued upward momentum in the coming months,' Howard added. The analyst also weighed in on how bitcoin prices could behave over the coming months based on the digital asset's market history. 'As we move into the summer period in the Northern Hemisphere, the market liquidity typically thins, contributing to more pronounced price swings. Despite this expected increase in volatility, downside moves below $100,000 appear less probable than an advance beyond the $110,000 level,' Howard emphasized. 'Current options market data shows significant open interest in call options, reflecting a broadly bullish sentiment. Strikes at $112,000 and $115,000 for the current and upcoming expiry cycles are particularly notable, suggesting traders are positioning for further upside in Bitcoin's price trajectory,' he stated, stressing the positive outlook he has for the digital asset.
Yahoo
a day ago
- Business
- Yahoo
Bitcoin's $95K-$105K Range in Focus as $10B BTC Options Expiry Looms
Bitcoin BTC options worth billions of dollars are set to expire this Friday at 08:00 UTC on Deribit, making the $95,000 to $105,000 range a critical zone for potential volatility and directional cues. At press time, a total of 93,131 bitcoin monthly options contracts, worth over $10 billion, were due for settlement, with 53% being calls and the remainder being puts. A call option represents a bullish bet on the market, while the put option offers insurance against price slides. On Deribit, one options contract represents one BTC. The open interest distribution is such that a large amount of "delta" exposure is clustered at the $95,000, $100,000 and $105,000 strikes. This means traders holding positions at these strikes have a significant net directional risk to bitcoin's price. Gamma, which measures the sensitivity of options to changes in BTC's price, will peak as the expiration nears. Therefore, price volatility could trigger widespread hedging by both investors and market makers (who are always on the opposite side of investors' trades), further exacerbating price turbulence. "The largest delta concentration is in Deribit BTC's May 30 expiry, with $2.8B delta exposure led by strikes at $100K, $105K, and $95K, which has a potential for strong gamma-driven flows into month-end," decentralized crypto trading platform Volmex said in an explainer on X. "Any move can trigger aggressive dealer hedging, fragile gamma environment! Expect volatility!," Volmex added. At press time, Bitcoin changed hands at $107,700, having reached record highs above $111,000 the previous week, according to CoinDesk data. Deribit's DVOL index, which represents the options-based 30-day implied or expected volatility, continued to decline, suggesting minimal concern over volatility driven by the upcoming expiry. Volmex's annualized one-day implied volatility index ticked slightly higher to 45.4%. That implies a 24-hour price move of 2.37%. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
The '$300K Bitcoin Lottery' Grows Even Bigger as Traders Chase Upside – Time to Step Back?
Earlier this month, CoinDesk highlighted the rising demand for the Deribit-listed $300,000 bitcoin BTC call option, noting it as one of the most popular bullish plays for the all-important June quarter expiry. Now, this bet has become the most popular in the impending quarterly expiry, reinforcing its appeal as a "lottery ticket" for traders anticipating a bitcoin price rally above $300,000 by the end of the next month. At press time, the $300,000 call option was the most popular bet in the June 27 expiry, with a notional open interest of over $600 million, up from $484 million three weeks ago, according to data source Deribit. Notional open interest represents the dollar value of the number of active or open contracts at a given time. On Deribit, one options contract represents one BTC. "The June $300K BTC call options have emerged as the strike with the highest open interest [in June expiry], reflecting aggressive speculative positioning by traders anticipating continued upside," Deribit's Asia Business Development Head Lin Chen told CoinDesk. "The combination of record-breaking volumes and concentrated options bets signals elevated market confidence—and the potential for heightened volatility ahead," Chen added. Deribit's notional options open interest hit a record high of $42.5 billion last week. The momentum is mirrored in the platform's newly launched block RFQ (Request for Quote) system, registering a historic record of nearly $1 billion in daily volume. A call option gives the purchaser the right but not the obligation to buy the underlying asset, BTC, at a predefined price on or before a specific date. A call buyer is implicitly bullish on the market. The $300,000 call expiring on June 27 represents a bet that bitcoin's price will rise three times from the present $110,000 to over $300,000 by the end of the first half. The bet sounds outlandish, as the first half will end in roughly four weeks. But that's been the case lately on Deribit, with traders increasingly targeting upside potential through short-term options. That is evidenced by front-end risk reversals, measuring the demand for calls relative to puts over short-term, being pricier than those with longer maturities. The chart by Amberdata shows risk reversals are positive across the board, indicating a bias for bullish call options. However, short-duration calls are pricer than longer-duration ones. Usually, the opposite is the case. The trend indicates a heightened appetite for quick-paced bullish bets among market participants. "The three-day Bitcoin Conference 2025 is all set to start in Las Vegas today, and so people are speculating on what new bullish announcements will be released at the event," Chen explained. The growing demand for short-duration calls could be a contrarian signal suggesting that speculative excess is often seen near market tops, according to Markus Thielen, founder of 10x Research. Thielen said the options market is flashing a warning, with the seven-day calls trading at a 10% premium to puts. "The options market is flashing a warning: Bitcoin's skew, measuring the difference in implied volatility between puts and calls, has dropped to nearly -10%, indicating calls are pricing in significantly more volatility than puts," Thielen said in a note to clients. "This suggests traders are aggressively chasing upside rather than hedging downside risk. In our experience, such extreme skew levels often reflect peak bullish sentiment, a classic contrarian signal," Thielen added.
Yahoo
22-05-2025
- Business
- Yahoo
Bitcoin Options Open Interest Hit Record $42.5B on Deribit as Traders Eye Next Bull Target for BTC
"Don't be surprised if buying activity picks up across the spectrum of products tied to BTC," CoinDesk said in Tuesday's edition of the Crypto Daybook Americas, presenting a bullish case for bitcoin. As bitcoin's (BTC) price jumped to new lifetime highs above $111K during Thursday's Asian trading hours it spurred record activity in the Deribit-listed options market. The notional open interest (OI), or the dollar value of the number of active or open options contracts, rose to a record $42.5 billion, Deribit's CEO, Luuk Strijers, told CoinDesk. Options are derivative contracts that give the right but not the obligation to buy or sell the underlying asset at a predetermined price at a later date. A call provides the right to buy, representing an implicit bullish bet on the market, while a put option offers insurance against price slides. BTC's move to record highs saw traders chase upside through higher strike call options. "Most traded strikes in the past 24h: $120K and $130K upside calls for May and June expiry. Highest OI now sits at the $110K, $120K, and $300K June 27 strikes — showing bullish conviction," Strijers said. Deribit is the world's largest crypto options exchange, accounting for nearly 80% of the global crypto options activity. The exchange also offers trading in perpetuals and spot markets. The overall open interest across crypto options and perpetual futures segments has also hit a record high of over $45 billion. Publicly traded crypto exchange Coinbase has planned to acquire derivatives exchange Deribit in a $2.9 billion in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Mint
22-05-2025
- Business
- Mint
Bitcoin Price Today: World's largest crypto extends bullish rally to hit record high of $1,11,000 amid US optimism
Bitcoin's outperformance relative to smaller cryptocurrencies is widening. An index that tracks so-called altcoins is down about 40% year-to-date, while Bitcoin is up 18% so far in 2025. A group of 12 US Bitcoin exchange-traded funds have drawn strong inflows, with investors pouring in about $4.2 billion so far in May. In options markets, traders built eye-catching Bitcoin positions earlier this week with the $110,000, $120,000 and $300,000 calls expiring on June 27 logging the most open interest — or number of outstanding contracts — on Deribit, the derivatives exchange. Bitcoin surpassed $111,000 for the first time, with traders increasingly bullish on the prospects of the original cryptocurrency amid mounting institutional demand and support from Donald Trump's administration. Bitcoin climbed as much as 3.3% on Thursday to hit a record of $111,878, and traded just below $111,000 at 6:15 a.m. in New York. Smaller tokens also rose in a broad rally, with second-ranked Ether at one point up about 7.3%. A wave of optimism is buoying Bitcoin after the advancement of a key stablecoin bill in the US senate fueled hopes of greater regulatory clarity for digital-asset firms under President Trump, who is avowedly pro-crypto. Surging demand from Michael Saylor's Strategy — which has stockpiled over $50 billion worth of Bitcoin — and a growing list of token hoarders is another driving force behind the rally. Bitcoin earlier rose to its highest level on record on Wednesday, eclipsing the previous high from January, as risk sentiment continues to improve after last month's tariff-induced selloff. Its ascent was driven by a combination of factors including easing trade tension between the United States and China and Moody's downgrade of U.S. sovereign debt which has prompted investors to seek alternative investment sources to the dollar. Coinbase said on Monday the U.S. Department of Justice has opened a probe into a recent data breach at the company. "We're still in year four of the bitcoin price cycle - the year after the bitcoin halving when miner rewards are slashed in half - which historically means its best days are still ahead of it and - while macro uncertainty and the threat of further volatility remains, a target of $150,000 in 2025 is still very much on the cards," Trenchev said.
