$BTC Bitcoin

BTC

Surpassed US$ 101,000 on May 8, reaching its highest level in over three months. The daily gain of 4.6% triggered US$ 205 million in short position liquidations and wiped out the value of nearly all put options. Now traders wonder if Bitcoin is about to break its all-time high of US$ 109,354 in the short term.

The total open interest of Bitcoin put options for the next three months stands at US$ 8.3 billion, but 97% of them were placed below US$ 101,000 and are likely to expire worthless. Still, this does not mean that all put option traders were betting on Bitcoin's decline, as some may have sold these instruments and profited from the price increase.

Among the largest strategies traded on Deribit is the "bull put spread", which involves selling a put option and simultaneously buying another with a lower strike price, limiting both the maximum profit and the risk of loss. For example, a trader aiming for profit with higher prices may sell the US$ 100,000 put and buy the US$ 95,000 put.