The recent downturn in the cryptocurrency market has led to a shift in traders’ focus, with the previously preferred $120,000 bitcoin (BTC) options bet being overtaken by the $100,000 bet, indicating a reevaluation of bullish projections.
As of now, the $100,000 call option is the top choice among BTC options contracts on the exchange, showing a notional open interest of $1.55 billion. This notional open interest reflects the total dollar value of active option contracts at a specific moment.
In contrast, the earlier frontrunner, the $120,000 call, now holds the second position with a notional open interest of $1.33 billion.
A call option grants the buyer the right, though not the obligation, to acquire the underlying asset at a previously agreed-upon price at a designated future date. Those purchasing call options generally express a bullish outlook on the market. Therefore, a substantial increase in open interest for higher strike, out-of-the-money calls like $100,000 and $120,000 denotes strong bullish sentiments.
The decline in preference for the $120,000 strike in favor of the $100,000 option likely indicates that traders are adopting a more cautious stance following the recent price drop below $80,000. This may also represent a wider reassessment of bullish attitudes within the market.
The 25-delta risk reversals, which assess the gap between the implied volatility for higher strike calls versus lower strike puts, are currently revealing negative trends, especially for protective put options extending through the end of May. This suggests apprehensions regarding a potential prolonged downturn in prices.
The outlook appears bullish for call options beyond May, as the dollar value of total open call options exceeds $16 billion—almost double the $8.35 billion in open put options.
