Bitcoin Options Are Seeing a Flurry of Movement in Connection with the US Elections! Here Are the Details
Crypto investors are pouring hundreds of millions of dollars into Bitcoin (BTC) options tied to the upcoming US election, with open interest of around $350 million reflecting strong bullish sentiment.
Bitcoin Options Tied to US Elections See $350 Million in Short Selling, Reflecting Bullish Trend
These election expiration options began trading on Deribit just over a month ago, four days after the Nov. 4 election. Notional open interest, or the total dollar value of active contracts, currently stands at $345.83 million, according to Amberdata.
Most of the interest is concentrated in call options, representing 67% of the total, while the remaining 33% is comprised of put options.
The resulting bid-ask ratio of below 0.50 indicates that call options are twice as likely as put options, indicating optimism that the election results will boost Bitcoin prices.
“These election-specific contracts allow investors to capitalize on the increased interest by speculating on how the election could impact crypto markets in a targeted manner,” said Wintermute, an algorithmic trading firm.
Among the call options, the $80,000 strike price is the most popular with over $39 million in open interest. Generally, investors are investing in higher strike prices ranging from $70,000 to $140,000, suggesting a belief that Bitcoin could reach new record highs as the election approaches.
On the downside, $39 million is locked in the $45,000 put option, suggesting some participants are hedging against potential downsides.
*This is not investment advice.
