Crypto traders are betting big on the U.S. elections, with millions locked in options contracts.
In the latest crypto news, Crypto traders are eagerly eyeing the upcoming U.S. elections, betting big on how the results might sway the digital assets market. Millions of dollars in Bitcoin (BTC) options are tied to this event, with a significant portion already locked in as traders anticipate a market shift post-election.
The so-called “election expiry options” are set to settle four days after the November 4 elections and have been trading on Deribit for about a month. As of now, the total notional open interest—the dollar value of active options contracts—stands at a hefty $345.83 million, according to Amberdata.
Of these contracts, a whopping 67% are call options, which are favored for their unlimited upside potential, though they come with a limited loss risk. The remaining 33% are put options, which serve as a safety net against price drops.
This distribution gives us a put-call ratio of less than 0.50, signaling that traders have opened twice as many call options as puts—a clear sign of bullish sentiment regarding the election’s impact on the crypto market.
Wintermute, an algorithmic trading firm, noted:
These election-dedicated contracts allow investors to capitalize on the increased interest by speculating on how the election might affect the crypto markets in a targeted way. The current put-call ratio of 0.50 indicates a bullish sentiment, with twice as many calls traded as puts.”
The most popular option right now is the $80,000 strike price call, with an open interest exceeding $39 million. Generally, traders are focusing on higher strike prices, ranging from $70,000 to $140,000, indicating that many are positioning themselves for potentially new all-time highs in bitcoin around the election period. On the flip side, $39 million is also tied up in the $45,000 put option, suggesting that while optimism prevails, some are still hedging their bets against a possible downturn.
Wintermute summed it up well: the concentration of open interest in call options around the $80K and $100K marks shows that many market participants are gearing up for potential upside in bitcoin, while the puts at $45,000 suggest that a cautious few are seeking protection against any downside risk.
