Deribit Bitcoin Options Open Interest Surpasses $40 Billion

Deribit, the leading crypto derivatives exchange, achieved a significant milestone by surpassing $40 billion in open interest for Bitcoin (BTC) options ahead of the June 27 expiration. This record-breaking figure underscores the growing interest and optimism among investors in the crypto market. The total open interest across all platforms briefly exceeded $45 billion, with Deribit handling nearly 90% of that amount, solidifying its dominance in crypto options trading. Approximately 139,000 BTC contracts, representing about $15 billion in notional value, expired during this session.

The put-call volume ratio settled at 0.75, indicating a bullish sentiment among traders. The max-pain price, the level where options buyers incur the most losses, was set at $102,000. This level often acts as a gravitational pull for prices during expirations, suggesting that traders are positioning themselves for potential upside movements in Bitcoin's price. Ether (ETH) also saw significant activity, with around 939,000 ETH contracts expiring, equivalent to $2.29 billion in value. The put-call ratio for ETH was 0.52, indicating a bullish sentiment, while the max-pain level was identified at $2,200.

This milestone comes just months after a major deal was announced to acquire Deribit, signaling the intent to capture the growing appetite for crypto derivatives in the market. The significant options expiry is expected to bring some volatility, but the overall sentiment remains optimistic, with investors positioning themselves for potential upside movements in Bitcoin's price. Bitcoin's implied volatility, as measured by Deribit DVOL, has dropped to 38% from 50% in April, signaling that the market is increasingly confident in the cryptocurrency’s macro-hedge role. The put-call skews show no clear directional positioning for traders in the short term, further indicating a balanced market sentiment. The $105,000 level is seen as pivotal for Bitcoin, with technicals suggesting caution if support fails. Low open interest in perpetual contracts and fairly depressed Bitcoin implied volatility and skew are indicative of limited expectations for sharp price movements going into Friday’s expiry.

Investors are adopting a wait-and-see approach ahead of this major options expiry, with Bitcoin continuing to hover around the $105,000 level. The market is eyeing this $14 billion options expiry on Deribit, with risk reversals showing a slight call bias in BTC options. This indicates that while there is some optimism, the market remains cautious and balanced. The significant options expiry is expected to bring some volatility, but the overall sentiment remains optimistic, with investors positioning themselves for potential upside movements in Bitcoin's price.