Bitcoin options traders are increasingly targeting call options with strike prices above $80,000 for contracts expiring in November, ahead of two major market events: the U.S. presidential election on November 5 and the Federal Open Market Committee’s (FOMC) interest rate decision on November 8, according to an analysis by Bitwise head of research for Europe, André Dragosch.
The highest level of open interest in Bitcoin options is currently set for the November 8 expiry, coinciding with the FOMC meeting and the aftermath of the U.S. election. This trend shows a strong bias toward call options, suggesting that traders are positioning for a bullish outcome.
Bitcoin call options allow traders to lock in a purchase price at a specific level before the expiration date, which can be profitable if Bitcoin’s price rises. This focus on call options indicates a positive sentiment as traders anticipate a potential uptick in Bitcoin’s price.
Market expectations indicate a 90.2% probability that the U.S. Federal Reserve will announce a 25 basis point cut to the federal funds rate during its November 8 meeting. Such a rate cut could increase risk appetite, driving positive sentiment in cryptocurrency markets.
Deribit data shows a significant concentration of call options expiring on November 29, with over 3,100 contracts for strike prices between $80,000 and $82,000, representing a notional value of over $212 million. Comparatively, fewer put options are in play, reinforcing the market’s bullish stance.
Despite the overall optimism, there has been a recent rise in hedging activity, indicated by an increase in put open interest. This suggests that while traders remain bullish, some are taking precautions against potential downside risks.