Bitcoin Perpetual OI Surges As Funding Rates Double
Perpetual open interest in Bitcoin derivatives has risen from 304,000 to 310,000 BTC as traders anticipate significant market movement by year-end. The funding rate increased from 0.04% to 0.09%, indicating a buildup of leveraged long positions and bullish market sentiment, though this also raises the risk of a market correction due to possible overleveraging. Bitcoin briefly touched $90,000 but retreated to $88,200. Market volatility is expected to intensify with the approaching December 26 expiry of Bitcoin options contracts totaling over $23 billion in notional value, one of the largest such events to date. Most call options are set at $100,000 and $120,000, while puts cluster around $85,000. The current put/call ratio of 0.37 shows far more bullish than bearish contracts. The max pain price is $96,000, meaning many bullish options risk expiring worthless if prices don’t rise, pointing to potentially overoptimistic positioning among traders.
