Bitcoin Price Eyes $80K as Futures Premium Soars and $1.6B in Open Options Bet Hints Price Swings

Futures premiums soar, indicating a bias for bullish bets.

Bitcoin (BTC) price continued to march higher Sunday, reaching within $1,500 of the $80,000 round number as traders ramped up bullish bets in derivatives linked to the leading cryptocurrency.

The latest price surge came amid a broader market rally following the U.S. presidential election, which saw Donald Trump secure the Republican nomination. Hopes are high that the next U.S. administration will provide greater regulatory clarity for the digital assets industry.

Data showed traders were paying an annualized premium of over 14% for three-month bitcoin futures on Binance and Deribit, the highest 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, which could, in turn, attract carry traders looking to profit from price discrepancies between the two markets.

Meanwhile, open interest in the $80,000 strike BTC call, offering an asymmetric upside potential to buyers at prices above the said level, had risen to over $1.6 billion, Deribit data showed.

Traders have been buying the $80,000 call in anticipation of a price breakout before the year-end. Data showed traders began to build up positions in the $80,000 call option as early as mid-October.

However, Deribit data also showed the $80,000 strike had the most negative gamma. This means that volatility could increase sharply once prices reach that level.

Holding negative gamma translates into holding a net short exposure at a specific price level. Concentration of negative gamma at $80,000 suggests that dealers or entities tasked with providing liquidity to order books may be buying the potential breakout above $80,000, adding to bullish price momentum in the market.