Key takeaways:
97% of the $8.3 billion in Bitcoin put options expire worthless at a $102,000 BTC price.
Short covering above $105,000 could trigger a Bitcoin price rally to new highs.
Bitcoin (BTC) soared above $101,000 on May 8, reaching its highest level in over three months. The 4.6% daily BTC price gain triggered $205 million in liquidations of bearish futures positions and eroded the value of nearly every put (sell) option. Traders now question whether Bitcoin is poised to break its $109,354 all-time high in the near term.
Bitcoin put (sell) options open interest for May-June-July, USD notional. Source: Laevitas.ch
The aggregate Bitcoin put (sell) option open interest for the next three months stands at $8.3 billion, but 97% of those have been placed below $101,000 and will likely expire worthless. Still, this does not mean every put options trader was betting on Bitcoin’s downside, as some may have