Crypto: $10.8b In Bitcoin Options Expire This Week: Will Bulls Chase $95k...

Bitcoin options data shows bearish bets holding the advantage in Friday’s $10.8 billion expiry, unless bulls manage a pre-expiration breakout above $90,000.

Bearish options strategies maintain an edge unless Bitcoin secures a decisive price breakout above 90,000.

Traders are using $100,000 call (buy) options as income tools rather than direct bets on a massive Bitcoin rally.

Bitcoin (BTC) has rebounded multiple times from the $87,000 level over the past two months, but traders remain skeptical about a decisive breakout above $95,000. Friday’s upcoming $10.8 billion BTC options expiry represents a pivotal moment for bulls, especially as call (buy) options dominate overall market interest.

The aggregate $6.6 billion in call options open interest sits 57% higher than the $4.2 billion in put (sell) instruments; however, this does not necessarily mean bulls are in control. As usual, Deribit maintains a comfortable lead over its competitors with a 78.7% market share, followed by OKX at 6.3%. The Chicago Mercantile Exchange (CME) holds third place with a 5% share.

Less than 17% of the Jan. 30 call options interest at Deribit is positioned below $92,500. Furthermore, given that Bitcoin's lowest price in two months was $84,000, it is likely that call options at $70,000 and lower are being utilized for complex onchain strategies rather than direct bets on price appreciation. Purchasing a call option 20% below current market levels is prohibitively expensive for most retail traders.

For example, a $70,000 BTC call option for Feb. 27 currently trades at 0.212 BTC, which is significantly higher than an $80,000 call option at 0.109 BTC. This price gap explains why bulls typically prefer options near or slightly above the spot price level. Conversely, BTC call options at $110,000 or higher are often disregarded, as their cost is lower than 0.002 BTC (roughly $180).

A significant portion of the $100,000 and higher call options can be attributed to covered call strategies. In this setup, the seller receives an upfront premium, similar to earning interest on a bond. This differs from standard fixed-income products because the seller retains the underlying Bitcoin, even though their potential profit is capped. Consequently, these are rarely viewed as purely bullish indicators.

Call options at Deribit between $75,000 and $92,000 total $850 million. To determine if bulls are better positioned for Friday’s expiry, one must compare how put options are stacked and estimat

Source: CoinTelegraph