As Bitcoin surpasses $121,000, the options market shows strong upside positioning, with traders hedging against potential volatility and anticipating further price movements.
Bitcoin has reached a new all-time high above $121,000, with the options market on Deribit indicating significant hedging pressure and upside exposure. Open interest in BTC options has increased from 335,000 BTC to nearly 394,000 BTC, with calls dominating the market. The notional value of call options stands at $24.86 billion, compared to $14.41 billion for puts, reflecting traders' confidence in further price increases. Key strike prices show concentrated open interest, particularly around $120,000, suggesting a potential short-gamma feedback loop that could sustain Bitcoin's price near its all-time high. A breakout above $125,000 may trigger aggressive buying, while a drop below $118,000 could lead to rapid declines.