Bitcoin Options Open Interest at 2021 Peak, Will BTC Break Above $31,300?

Total bitcoin options open interest, the number of open calls and put orders, rose as recently as June 30 to $14.87 billion, but fell on-chain to $10.74 billion on July 4. statistics Show on 5th July.

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At $14.87 billion, the total number of bitcoin options open interest on top trading platforms, mostly Deribit, CME and OKEx, was at an all-time high registered in October 2021, when prices rallied to all-time highs. Went. $69,000.

On October 21, total bitcoin open interest stood at $15.06 billion, a record high that has never been broken.

btc options peak 2021

Many traders seem optimistic about the future of bitcoin, as open interest remains high and is trading near its October 2021 peak. With a strong finish to the first half of 2023, prices are expected to continue rising.

The recent surge in bitcoin price, which reached a new high of $31,300 in June 2023, could be seen as an overall bullish sign, similar to the period before the price reached over $69,000 in November 2021.

This skewed and apparent optimism can be shown by the distribution of “call” and “put” bitcoin options on the major crypto derivatives trading platforms that Deribit dominates. For example, as of July 5, more than 65% of all bitcoin options orders are “calls,” meaning that more traders expect prices to move above spot rates. At this level, there are approximately 206,000 BTC orders placed as “calls”.

Meanwhile, a minority of traders expect spot rates to price contracts at $28,300 or lower in the coming months. Around 99,000 BTC options are held as “puts” in line with traders’ expectations of worse prices in the coming months.

bitcoin traders bullish

The same can be seen in the trading pattern in the last 24 hours. Despite bitcoin price falling 2% and staying above the psychological level of $30,000, most options traders are upbeat as there are more “calls” than “puts”.

Typically, options give the contract holder the right or obligation to buy or sell the underlying asset at an agreed upon price on or before the expiration date. Mostly, options contracts are used by traders to hedge their risks. More “calls” could mean more BTC traders are bullish, hoping the coin will clear recent resistance levels.

Based on the recent trends, the options trading volume on Deribit is 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 a bearish market that saw bitcoin fall below $16,000 in November 2022. Since then, the options trading volume has soared, reaching over $2.3 billion in March 2023. It has fallen below the $1 billion mark at the time of writing in July. 5.

cover image from canvas, chart from tradingview