According to the report, there was an increase in the purchase of Bitcoin call options with strike prices above $60,000 at expiration from April to December of this year.
“There has been massive Bitcoin call option buying this week alone, with nearly $10 million being spent on $60,000 strike prices and $80,000 premiums expiring from April through December,” QCP Capital’s Options Vol-cast report said on Thursday. “I saw it,” he said.
This observation is consistent with indicators from the Deribit cryptocurrency derivatives exchange. Deribit has a significant concentration of public Bitcoin call options with strike prices above $65,000 expiring from April to December. Specifically for Bitcoin call options expiring at the end of December, there is a cluster centered around the strike price of $100,000.
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The December 2024 call option shows a significant focus on the strike price of $100,000. Image: Deribit.
Of all the upcoming expirations, the largest Bitcoin option is a call option with a strike price of $60,000 that expires in late March. According to Deribit data, there are 1,273 Bitcoin currency contracts with a strike price of $60,000 expiring on March 29, representing a notional value of over $67 million.
The largest volume of BTC options is a call option expiring in March with a strike price of $60,000. Image: Deribit.
The concentration of Bitcoin calls above the $60,000 strike price suggests that a significant percentage of market participants have a particular interest or expectation that the Bitcoin price will rise above this level.
When someone purchases an option premium, they pay a fee called a premium to acquire the option contract. In financial markets, an option is a derivative contract that gives the holder the right (but not the obligation) to buy or sell an underlying asset at a predetermined price, known as the strike price, within a certain period of time. The buyer of the option premium is essentially purchasing this right.
Bitcoin was trading at $52,330 at 6:07 a.m. ET, according to The Block’s pricing page.
The GM 30 Index, which represents the top 30 cryptocurrencies, is up 2.49% in the last 24 hours and currently stands at 112.63.
Bitcoin price exceeded $52,000. Image: Block.
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