Bitcoin options open interest soars to a new peak as traders pursue a $116K price target
Bitcoin Options Market Reaches All-Time High Amid Bullish Market Trend
The Bitcoin options market has witnessed a surge, reaching an unprecedented high of around $65 billion, as the cryptocurrency's price nears a record $112,000. This uptick in open interest was mainly triggered by options on BlackRock's spot Bitcoin exchange-traded fund (ETF).
According to Greg Magadini, director of derivatives at Amberdata, this trend underscores the broader bullish sentiment among traders and investors. In an interview with Decrypt, Magadini pointed out that the notable increase in call options—which give holders the right to buy Bitcoin at a predetermined price—indicates a strong conviction in future price rallies.
Taking a closer look at the data, Magadini said that Bitcoin's price could rally into a range between $116,000 and $120,000, reflecting high investor optimism. Notably, BlackRock's spot Bitcoin ETF has seen $20 billion in notional open interest, demonstrating wide-scale participation in the Bitcoin market.
Magadini added that the Bitcoin options market on top of IBIT has been one of the most actively traded, showcasing robust adoption and enthusiasm for the cryptocurrency.
Decoupling the data tied to BlackRock's Bitcoin ETF, CoinGlass reveals that the Bitcoin options open interest peaked around $46 billion in late November. However, it is essential to note that the Bitcoin options market remained bullish on Thursday, with traders predominantly favoring out-of-the-money call options on Deribit.
Deribit, a crypto derivatives exchange Coinbase plans to acquire for $2.9 billion, reported a significant difference in favor of call options, with approximately $23 billion worth outstanding compared to $13.9 billion worth of put options as of the latest available data.
Currently, Bitcoin was trading around $111,800, marking a 4.2% daily increase and a 23% price surge over the past 30 days. Following a dip to $74,000 last month, the crypto asset appears to be poised for additional price growth.
In the context of the overall market and based on options market data, experts predict a generally bullish outlook for Bitcoin in the near to medium term, with potential price targets in the range of $110,000 to $115,000 by the end of May 2025. Meanwhile, longer-term forecasts suggest Bitcoin could reach between $120,000 and $210,000 in 2025, should the current bull cycle persist.
- The Bitcoin options market, currently valued at around $65 billion, has surged, with the cryptocurrency's price approaching a record $112,000, mainly due to options on BlackRock's spot Bitcoin exchange-traded fund (ETF).
- Greg Magadini, director of derivatives at Amberdata, believes this trend underscores a broader bullish sentiment among traders and investors, as shown by the increase in call options, which give holders the right to buy Bitcoin at a predetermined price.
- Magadini predicts Bitcoin's price could rally into a range between $116,000 and $120,000, reflecting high investor optimism, and points out that BlackRock's spot Bitcoin ETF has seen $20 billion in notional open interest.
- Magadini also mentioned that the Bitcoin options market on top of IBIT has been one of the most actively traded, demonstrating robust adoption and enthusiasm for the cryptocurrency, and Deribit, a crypto derivatives exchange, reported a significant difference in favor of call options.
