Bitcoin Deribit has about $7.9 billion worth of options set to expire this Friday, with positioning data showing $62,000 and $75,000 as key levels to watch.
According to data source Glassnode, the $75,000 level is where most call option trades occur, representing bullish bets. As of this writing, approximately $395 million in call option open interest is concentrated at the $75,000 strike price. This number represents the dollar value of the number of active call options contracts today.
What’s more, “gamma exposure” is heavily negative at the 75,000 strike level – meaning hedging flows from traders could amplify price movements around that level. As prices rise, they may need to buy more, and as prices fall, they may need to sell more, reinforcing the direction of the move.
Therefore, the 75,000 level could become an area of heightened volatility, with price swings becoming more intense rather than stabilizing.
Options are derivative contracts that give the buyer the right to buy or sell an underlying asset (in this case, BTC) at a later date at a predetermined price. A call option gives the right to buy, and a put option gives the right to sell.
It’s like paying a reservation fee to reserve the right to trade on a house at today’s price – you have the right to buy or sell it at that price later, but you have no obligation to trade if the market price moves against you.
On the downside, the maximum concentration of open interest is $62,000, with a contract value of approximately $330 million, marking the main area of downside protection.
The maximum pain level between the two is $71,000, which can serve as an expiring tycoon. The “maximum pain” point is the price level at which the greatest number of options contracts are expected to expire worthless on the settlement date, although this level may change based on changes in price and open interest prior to expiration.
All told, the options market is actually between $62,000 and $75,000, with $71,000 being the midpoint. Unlike March, when Bitcoin was trading below maximum pain, now the market is trading above it to test whether Bitcoin can sustain its gains.
Potential short squeeze higher
Funding rates for perpetual contracts remain negative, indicating growing short positions that could intensify tightening if prices continue to move higher. If the price remains resilient above $75,000, bears may unwind their positions, which could add to the upside momentum.
Data from Checkonchain shows that Deribit currently holds about $31 billion in open interest, the largest in the options market, even surpassing BlackRock’s nearly $28 billion IBIT.
