A $5 billion cluster has formed in bitcoin options. It tells a bullish story
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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On the leading crypto derivatives exchange Deribit, bitcoin options open interest is heavily clustered around the $70,000 and $72,000 strike prices. Together, these two strikes account for nearly $5 billion in notional open interest, representing about 18% of the platform’s total bitcoin options open interest of $28 billion. This concentration makes these the exchange's most popular BTC options contracts, with call options vastly outnumbering puts at both levels, signaling strong bullish market sentiment.
According to data from Laevitas, there are approximately 39,000 call contracts and 3,800 put contracts at the $70,000 strike, and roughly 37,900 calls to 1,200 puts at the $72,000 strike. Much of this positioning stems from large, deliberate trades, particularly bull call spreads which involve buying the $70,000 call and selling the $72,000 call. These spreads constitute about half of the total call open interest at each of these strikes. Additionally, some traders purchased outright calls, with one noted trade paying $3.4 million in premiums to gain upside exposure.
Market participants, including Jimmy Yang of Orbit Markets, have linked this demand for upside calls to optimism surrounding the CLARITY Act, a legislative proposal seen as potentially favorable for bitcoin's regulatory environment. However, recent market activity shows a pullback in this bullish positioning. The odds of the CLARITY Act being signed into law in 2026 have decreased from 51% earlier in the month to 38%, following comments from Senate leadership signaling a delay before the Senate recess in August. This has caused some traders to unwind these bullish call bets.
The strong call skew and concentrated open interest illustrate how traders have been positioning for a bitcoin price rise to the $70,000 to $72,000 range, partly motivated by anticipated regulatory developments. However, the recent decline in legislative optimism has tempered that enthusiasm, reflecting the dynamic and sentiment-driven nature of the bitcoin options market on Deribit.