As Bitcoin Eyes $80K, Futures Premium Soars and $1.6B Locked in Options Bet Points to Big Moves
2024-11-10

As bitcoin races toward the $80,000 mark, traders are scrambling to add bullish exposure in derivatives linked to the leading cryptocurrency.
BTC surpassed $79,000 during Sunday's Asian hours, taking the cumulative weekly gain to 15%, the highest since February, CoinDesk data show. Most gains have happened since Donald Trump won the U.S. election held Thursday, raising hopes of regulatory clarity for the digital assets industry. 
The annualized rolling premium in three-month bitcoin futures listed on prominent exchanges Binance and Deribit has surged alongside the price, topping 14% for the first time since June, according to data source Velo. The so-called futures basis on the CME rose past 10% on Friday. 
The uptick in the premium reflects a bias for bullish bets and may entice carry traders looking to profit from price discrepancies between the two markets. 
Elsewhere, open interest in the $80,000 strike BTC call, offering an asymmetric upside potential to buyers beyond the said level, increased above $1.6 billion, according to data source Deribit. Traders have been piling into the $80,000 call since before the U.S. election, anticipating a breakout before the end of year-end. 
Data tracked by Amberdata show the $80,000 strike has the most negative gamma and as such volatility could increase sharply once prices reach that level. 
Holding negative gamma means holding a net short exposure at a specific level. Concentration of negative gamma at $80,000 means dealers or entities tasked with providing liquidity to order books could buy the potential breakout above $80,000, adding to bullish volatility in the market. 