Options traders bet big on Bitcoin reaching $120K despite low odds

The size and popularity of the Bitcoin options market have made it one of the best tools for gauging market sentiment and predicting volatility. Previous CryptoSlate analysis found that options wielded an outsized influence over Bitcoin’s price volatility and were responsible for most of the volatility we’ve seen this quarter.

Options data has shown a significant concentration of open interest (OI) at the $120,000 strike price for contracts expiring at the end of the year. This particular strike price has garnered significant attention from traders, with over $640 million in OI on Deribit alone. This OI far surpasses the activity we’ve seen at neighboring strikes across most platforms. Such a heavy focus on a single strike price shows speculators are optimistic about a price increase but creates a possibility of high volatility in the coming weeks.