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Large Bets on Bitcoin Options Are Evident. Can $50K Bitcoin Arrive In January?

2023-12-08 16:24:25

As demand for Bitcoin options opens at a historic high, big investment excitement surges.


On December 7, the amount of money traded in bitcoin options hit a record-breaking $20.5 billion. This outstanding accomplishment demonstrates professional players' active participation in the bitcoin market. In contrast to futures contracts, Bitcoin options have preset expiry prices, which provide important information about traders' predictions and the mood of the market.

With an astounding 90% market dominance, Deribit is at the leading edge of the Bitcoin options industry. There are now a significant $2.05 billion worth of options on the market that expire on January 26. It's important to remember, though, that as the deadline draws near, a sizable percentage of these wagers can become worthless. However, previously shelved optimistic wagers are making a comeback with the possibility of an exchange-traded fund (ETF) receiving administrative clearance.

How Much Does a Call Option on Bitcoin Go For?

The $54,000 call option that will run out on January 26 is currently trading for 0.02 BTC, or $880 based on current market values. For the buyer to benefit from this option, Bitcoin's value must rise by 25% during the following 49 days. Notably, sellers can reduce some of the imagined danger that comes with this transaction by hedging their exposure with Bitcoin futures and keeping the options benefit.

Less than twenty percent of open interest is in call options priced between $70,000 and $80,000, which indicates that bulls are not as enthusiastic as they may be. These options are presently only worth $1.2 million, while having a $285 million commitment. By contrast, the $60,000 and $65,000 call options that are scheduled to expire on December 29 have an open interest of $250 million.

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.

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