The most popular bitcoin call option has slipped by $10,000
Bitcoin's options market has shifted, with the $70,000 strike price replacing $80,000 as the most popular bullish call option. Analysts suggest this indicates a lower ceiling for price growth, as dealer hedging activity may act as a brake on rapid upward movement.
Why it matters
This shift in market positioning provides insight into investor sentiment and potential volatility constraints for the cryptocurrency market.
Bitcoin’s BTC $ 64,147.21 booming options market has undergone a notable shift in positioning that could slow the largest cryptocurrency’s ascent above $70,000.
That change is tied to open interest in options, a metric that gauges the dollar value locked in the number of call — that is, bullish — and put, or bearish, contracts at various strike levels. Call options at $70,000 are currently the most popular, with open interest of $1.63 billion, according to data source Metrics. The option is a bet that BTC’s price will rise above that level before the contract expires.
Here comes the most important part, though: The $70,000 strike has replaced the $80,000 call as the most popular play.
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