Bitcoin Surges 100% to $111,000, Drives Record $42.5 Billion Options Activity

Bitcoin's price surged to unprecedented heights, exceeding $111,000 during Thursday's Asian trading session, triggering a surge in activity within the Deribit-listed options market. This price movement led to a record-breaking notional open interest (OI) of $42.5 billion, as reported by Deribit's CEO, Luuk Strijers. Open interest refers to the dollar value of active or open options contracts, indicating a significant level of market engagement and speculation.

Options are financial derivatives that grant the holder the right, but not the obligation, to buy or sell the underlying asset at a predetermined price at a future date. Call options, which provide the right to buy, are typically seen as bullish bets on the market, while put options offer protection against potential price declines. The recent surge in Bitcoin's price has driven traders to pursue higher strike call options, reflecting a strong bullish sentiment.

According to Strijers, the most actively traded strikes in the past 24 hours were $120,000 and $130,000 upside calls for May and June expiry. The highest open interest is now concentrated at the $110,000, $120,000, and $300,000 June 27 strikes, further underscoring the market's bullish outlook. Deribit, the world's largest crypto options exchange, accounts for nearly 80% of global crypto options activity and also offers trading in perpetuals and spot markets. The overall open interest across crypto options and perpetual futures segments has also reached a record high of over $45 billion.

This heightened activity in the options market suggests that traders are positioning themselves for further price appreciation in Bitcoin. The bullish sentiment is evident in the preference for higher strike call options, which indicate expectations of significant price increases in the near future. The record open interest levels reflect the growing interest and confidence in Bitcoin's potential for further gains, as traders seek to capitalize on the cryptocurrency's upward momentum.