Bitcoin Options Surge: $100K Target Signals Bullish Market Revival

Introduction to Bitcoin Options and Market Sentiment

Bitcoin (BTC) is experiencing a bullish resurgence, with options trading reflecting renewed optimism among investors. After dipping to $75,000 last week, BTC has climbed above $84,000, driven by shifting market dynamics and reduced panic. This blog explores the recent surge in bullish Bitcoin options strategies, particularly the $100K call option, and why it’s a key indicator of market confidence. We’ll also analyze how these trends impact Bitcoin’s price trajectory and investor sentiment, making this a must-read for crypto enthusiasts and traders.

Bitcoin’s Price Recovery: What Sparked the Rally?

Bitcoin’s recent price recovery from $75,000 to over $84,000 has reignited bullish sentiment. The rally coincides with developments in global markets, including speculation around U.S. trade policies. Last week, reports suggested that the Trump administration might ease proposed tariffs on key tech products, such as smartphones, which initially included a 125% levy on Chinese imports and a 10% global tariff. While President Trump later refuted these claims, the initial news provided a catalyst for market stabilization.

This shift in narrative—from aggressive trade policies to potential capitulation—helped Bitcoin rebound. As bond market volatility subsided, traders turned to Bitcoin call options to capitalize on the expected upside. This pivot highlights Bitcoin’s role as a hedge against macroeconomic uncertainty and a speculative asset for bullish investors.

Key Takeaways:

• Bitcoin’s price surged from $75,000 to over $84,000.
• Market sentiment shifted due to speculation around U.S. tariff policies.
• Bullish call options gained traction as traders anticipated further gains.

Understanding Bitcoin Options: Calls vs. Puts

Bitcoin options are financial derivatives that give traders the right, but not the obligation, to buy (call) or sell (put) BTC at a predetermined price (strike price) by a specific date. Here’s a quick breakdown:

• Call Options: Purchased by bullish traders expecting Bitcoin’s price to rise. A call buyer profits if BTC’s price exceeds the strike price before expiration.
• Put Options: Favored by bearish traders or those hedging against price declines. A put buyer profits if BTC’s price falls below the strike price.

The recent surge in call options, particularly on the Deribit exchange, reflects growing confidence in Bitcoin’s upward trajectory. Deribit, which dominates over 75% of global Bitcoin options trading, reported a significant increase in $85K–$100K strike call options as BTC rallied.

Options Skew: A Reliable Sentiment Indicator

The options skew is a critical metric for gauging market sentiment. It measures the implied volatility (demand) for call options relative to put options. A positive skew indicates higher demand for calls (bullish sentiment), while a negative skew reflects stronger demand for puts (bearish sentiment).

Recent Skew Trends:

• Last Week: The 7-day skew dropped to -14%, signaling intense bearish sentiment as traders bought $75K–$78K put options to hedge against further declines.
• Current Trends: The 30-, 60-, and 90-day skews have rebounded to slightly positive levels, indicating reduced panic and renewed bullish interest. The 7-day skew, while still negative, has improved significantly.

This normalization of the skew, tracked by Amberdata, suggests that the market is moving past last week’s fear-driven trading. The resurgence of $100K call options further underscores this shift toward optimism.

Why It Matters:

• A positive skew reflects growing confidence in Bitcoin’s price growth.
• The shift from puts to calls signals a broader market recovery.

The $100K Call Option: A Bullish Bet

The $100K call option has emerged as the most popular bet on Deribit, with a cumulative notional open interest of nearly $1.2 billion. Open interest represents the total U.S. dollar value of active options contracts, highlighting the scale of bullish bets on Bitcoin reaching six figures.

Open Interest Breakdown:

• $100K Call: Leads with $1.2 billion in notional open interest, reflecting strong trader confidence in Bitcoin hitting $100,000.
• $70K Put: The second-most popular option, with $982 million in open interest, indicating some residual caution among traders.
• Other Strikes: Calls at $95K–$120K also show significant interest, while $80K puts were popular during last month’s market dip.

This concentration of open interest in high-strike call options mirrors sentiment from earlier this year, when $100K and $120K calls dominated before a market correction. The return of the $100K call as the top bet signals that traders are once again targeting a major milestone for Bitcoin.

Why $100K Matters:

• The $100K target is a psychological and technical milestone for Bitcoin.
• High open interest in $100K calls reflects strong bullish momentum.

Deribit’s Role in Bitcoin Options Trading

Deribit is the leading platform for Bitcoin options, accounting for over 75% of global trading volume. Its market updates provide valuable insights into trader behavior and market trends. According to Deribit, the recent price surge prompted traders to abandon protective $75K–$78K put options and lift $85K–$100K call options, aligning with Bitcoin’s rally from $75K to $85K.

This shift in trading activity highlights Deribit’s influence in shaping Bitcoin’s options market and its role as a barometer for investor sentiment.

Tips for Crypto Traders

To stay ahead in the crypto market, consider these actionable tips:

1. Monitor Options Skew: Use platforms like Amberdata to track skew trends and gauge market sentiment.
2. Follow Deribit Updates: Deribit’s market reports offer real-time insights into options trading activity.
3. Stay Informed on Macro Events: Global trade policies and bond market dynamics can significantly impact Bitcoin’s price.
4. Diversify Strategies: Combine call and put options to hedge against volatility while capitalizing on bullish trends.

By staying informed and leveraging data-driven insights, traders can navigate Bitcoin’s volatile market with confidence.

Conclusion: Bitcoin’s Bullish Outlook

Bitcoin’s recovery to over $84,000, coupled with the resurgence of $100K call options, signals a strong bullish revival. The normalization of options skew and the shift from bearish puts to bullish calls reflect growing confidence among traders. As the $100K target dominates open interest on Deribit, Bitcoin appears poised for further gains, provided macroeconomic conditions remain favorable.

For crypto investors, this is an exciting time to monitor options trends and capitalize on Bitcoin’s momentum. Stay tuned for more updates on Bitcoin’s price action and options trading strategies.