Institutional interest in Bitcoin options surges as open interest reaches $12.5B

Bitcoin options market witnessed significant activity with $2.75 billion in options on Deribit following recent expiry

Open Interest hits $12.5 billion, dominated by December 2023 calls and a shift in top strike prices towards $40,000

As Bitcoin's price surged recently, it attracted interest not only from retail investors but also from institutional players. The options market for BTC was highly active, with $2.75 billion worth of Bitcoin options on Deribit following the recent options expiry.

Open Interest reached levels reminiscent of 2021, totaling $12.5 billion at the moment. The majority of OI was associated with December 2023 calls, followed by November 2023 calls.

Regarding specific strike prices, there was a shift in the top strike prices, moving from the range of 29,000 to 32,500 to reaching 40,000. Short gamma positions were notable in the market, particularly from 36,000 to 40,000, indicating sensitivity to Bitcoin's price movements for those who had sold options.

Bitcoin maintained stability above $34,000 for five consecutive days. Long-term holders held their positions, while some long-term holders decided to take profits, marking a significant profit-taking event. Nonetheless, this profit-taking event might not have a substantial long-term impact.