Bitcoin‘s active options data highlights a significant concentration of outstanding contracts, specifically calls with a $50,000 strike price set to expire on January 26. Deribit data reveals over 8,300 contracts, amounting to over $376 million in notional value, for calls at this strike price. This suggests considerable anticipation among traders that Bitcoin’s price will exceed $50,000 by the end of January.
The $50,000 mark is a key focus across all expiry dates on Deribit, with more than 21,800 contracts outstanding for calls at this strike price, totaling $926 million in notional value. Velo Data notes derivatives trading skew towards options for buying Bitcoin at an even higher strike price, with the largest group of contracts outstanding being call options at $60,000 for the January 26 expiry.
It’s essential to note that market conditions can change rapidly, and factors like high-leverage trading may influence Bitcoin’s actual price movement. High-leverage trading allows control of larger positions with a smaller capital amount, amplifying both profits and losses and contributing to heightened volatility.
The recent drop in Bitcoin’s price led to significant liquidation of long positions on centralized exchanges, resulting in over $147 million in liquidated Bitcoin positions, predominantly longs. The broader crypto market experienced over $571 million in liquidated long positions in the last 24 hours, contributing to a total of $642 million in liquidations across various centralized exchanges, as per CoinGlass data.
In the past 24 hours, Bitcoin has retraced to below $43,000, marking a decline of over 6%. This pullback followed the digital asset breaking through a year-to-date high of over $45,800 on Tuesday.
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