Bitcoin Options: Unveiling Why a $200K Rally Isn’t Expected by Year-End

Key Points

1. A significant $8.8 billion Bitcoin options expiry is set for December 26, with over $1 billion tied to the $200,000 strike price.

2. Open interest shows a bullish skew with $6.45 billion in call options versus $2.36 billion in put options, but many are far-out-of-the-money (OTM) calls used for low-risk, leveraged bets.

3. Traders are hedging against potential price drops, with approximately $900 million in put options indicating caution.

4. The options market is priced for stability within a certain range, suggesting no massive price shock is expected unless new catalysts emerge.

5. Far-out-of-the-money calls are speculative bets unlikely to result in actual $200K Bitcoin prices by year-end.