The Bitcoin options market heats up, hitting a new record with $1.45 billion in open interest

rugdoc.eth · 2026-01-13T10:26:11+00:00

The Bitcoin options market is gaining attention with open interest reaching $1.45 billion, particularly as traders position for a bullish $100,000 target ahead of January expirations. The surge in call options suggests increasing demand, while high funding rates indicate aggressive leverage, raising the risk of volatility as the expiration date approaches.

rugdoc.eth

2026-01-13 10:26:11

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Recently, the open interest in the Bitcoin options market has expanded to $1.45 billion, drawing increased attention from traders. Of particular note is that traders are actively building bullish positions aiming for a $100,000 target, with expiration set for January.

Surge in Call Options Signals Potential Supply Pressure Relief

According to data analysis firm Deribit, call options account for $828 million of the total open interest, with most of these positions approaching year-end settlement. The addition of 420 BTC worth of new exposure by traders in just the past day indicates a rapid increase in market demand.

Gamma Squeeze Phenomenon Could Drive Price Upward

Changes in the options trading structure surrounding the spot market are creating conditions that could trigger a gamma squeeze through dealer hedging behaviors. This occurs as sellers buy additional assets to hedge their positions, resulting in a buildup of upward pressure.

Extreme Leverage, Funding Rate Surpasses 30%

The funding rate exceeding 30% annually in Deribit’s perpetual futures market reveals that market participants are constructing highly aggressive leverage positions. This suggests a dominant bullish sentiment but also indicates increased risk of liquidations.

Approaching January Expiry Raises Volatility Concerns

As these factors converge, the risk of sharp price swings increases as the January options settlement date approaches. In particular, the combination of gamma squeeze dynamics and high funding rates could lead to unexpected market volatility, warranting caution.

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