- $14 billion worth of Bitcoin options contracts are set to expire tomorrow across major crypto derivatives exchanges like Deribit and CME, with 60% calls and 40% puts indicating bullish sentiment.
- Open interest in Bitcoin options has climbed to $21 billion total across exchanges, with additional billions set to expire in March right before Bitcoin’s next halving event.
- Despite recent sideways trading, derivatives data like high call volume and open interest suggests investors remain optimistic on Bitcoin’s price outlook, with upcoming options expirations and potential SEC decisions likely bringing more volatility.
A massive amount of Bitcoin options is set to expire tomorrow, totaling around $14 billion worth of contracts. The split between bullish calls and bearish puts indicates that investors remain optimistic about Bitcoin’s price.
The Options Landscape
There is $6.6 billion expiring on crypto derivatives exchange Deribit and another $6.4 billion on the Chicago Mercantile Exchange (CME). On CME, 55% of the expiring options are calls while 45% are puts. However, on Deribit, investors appear even more confident with 60% calls and 40% puts.
Open interest across exchanges has also climbed to $21 billion. Deribit and CME account for the bulk, with $23 billion and $15 billion worth expiring at the end of January, respectively. Binance, OKX, ByBit, and BIT also have a combined $15 billion expiring tomorrow.
The Road to the Bitcoin Halving
Beyond tomorrow’s expiration, there is already $5 billion worth of options set to expire in March right before Bitcoin’s next halving. The halving happens every four years and cuts the block reward miners receive in half.
Past halving’s have preceded Bitcoin price increases, so there is significant interest in futures and options contracts leading up to the event expected in April 2024. High open interest signals confidence that current positive trends will continue.
The Bigger Price Picture
While Bitcoin is slightly down from its weekly highs, it remains up 114% over the past month. Many anticipate the SEC’s decisions on pending spot Bitcoin ETF applications could spark significant price action in the coming weeks.
With high call volume and open interest ahead of Bitcoin’s halving, derivatives data suggests investors broadly remain bullish on Bitcoin’s price despite recent sideways trading. The options expirations and potential SEC decisions could bring more volatility to the markets in the near future.