Crypto derivatives markets are heating up as Glassnode reports perpetual open interest has risen in anticipation of a big move at the end of this year.
Perpetual open interest (OI) has risen from 304,000 to 310,000 Bitcoin (BTC) as its price briefly touched $90,000 on Monday, Glassnode said on Monday.
The funding rate has also “heated up” from 0.04% to 0.09%, which suggests derivatives traders are anticipating a potential market move by the end of the year.
“This combination signals a renewed buildup in leveraged long positioning, as perpetual traders position for a potential year-end move,” Glassnode said.
Bitcoin perpetuals are futures contracts that don’t expire and can be held indefinitely. They track Bitcoin’s spot price through a mechanism called the funding rate, which is a periodic payment between traders holding long and short positions.
Increased funding rate signals bullishness
When funding rates are increasing, it typically means the perpetual price is rising above spot, and more traders are bullish as they are willing to pay premiums to hold long positions.
However, it can also signal potential market overheating as extremely high rates can indicate overleveraged longs and possible correction risk.
Bitcoin failed to make progress above $90,000 and had fallen back to $88,200 at the time of writing.
_Bitcoin perp funding rates have increased recently. Source: _Glassnode
Massive end-of-year options expiry
Market volatility could also be amplified by the massive end-of-year Bitcoin options expiry event on Friday, Dec. 26.
More than $23 billion in notional value Bitcoin options contracts will expire in one of the largest options expiry events of all time. End-of-quarter and end-of-year expiries are much larger than regular weekly or monthly events.
**Related: **__Crypto has everything needed for a bull market, so why is the market down?
Calls, or long contracts, are clustered around the $100,000 and $120,000 strike prices while puts, or short contracts, are concentrated around $85,000, according to Deribit.
The put/call ratio is currently 0.37, which means there are a lot more long contracts expiring than shorts. Max pain, or the strike price at which most losses will be made, is currently $96,000, according to Coinglass.
If spot prices do not move higher, the majority of these contracts will be worthless on expiry. A $7,500 gap to max pain suggests bullish bets, or calls at higher strikes, were overly optimistic and will realize losses.
_There is a lot of OI at higher strike prices. Source: _Deribit
**Magazine: **__Bitcoin’s critical level is $82.5K, Ethereum ‘not done yet’: Trade Secrets
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
'Bitcoin ETF Performance Pales Next to Gold': Mike McGlone - U.Today
Mike McGlone, a Bloomberg strategist, argues that Bitcoin ETFs may not drive long-term growth for Bitcoin, which has underperformed compared to gold. Despite recent gains, Bitcoin's performance seems capped, suggesting a potential peak in crypto enthusiasm.
UToday1h ago
Nunchuk Launches Open-Source Bitcoin Tools for AI Agents With 'Bounded Authority'
In brief
Nunchuk released two open-source tools designed to let AI agents interact with Bitcoin wallets under strict limits.
The system uses shared wallets and approval policies so agents cannot spend funds beyond defined rules.
The tools aim to support automated financial tasks while
Decrypt1h ago
The U.S. government transferred 2.44 BTC to a certain CEX, worth about $177k
Gate News message. On April 10, according to Lookonchain monitoring, the U.S. government (funds seized involving Glenn Olivio) today deposited 2.44 BTC to a CEX, worth approximately $177k.
GateNews2h ago
BlackRock withdrew 2,700 BTC and 30,000 ETH from a certain CEX.
Gate News, April 10, according to Onchain Lens monitoring, BlackRock withdrew 2,700 BTC (worth $196.87 million) and 30,000 ETH (worth $67.42 million) from a certain CEX.
GateNews2h ago
Bhutan’s Bitcoin reserves are down by more than 70%, with the sovereign wealth fund DHI frequently transferring assets, drawing attention
The Royal Government of Bhutan recently transferred approximately $18 million worth of Bitcoin. Its holdings have decreased from about 13,000 BTC in 2024 to 3,774 BTC, a reduction of more than 70%. The assets are managed by Druk Holding, and the country uses hydropower to mine Bitcoin. The recent transfers may be related to infrastructure financing needs. Bhutan still remains one of the world’s major Bitcoin-holding countries.
ChainNewsAbmedia2h ago
Tom Lee: The market is showing signs of forming a bottom; Ethereum, BMNR, and Bitcoin are recommended.
Gate News message, April 10, renowned market analyst Tom Lee posted that there are increasing signs the market bottom has already formed, even though the overall market still generally remains skeptical. Tom Lee suggested that for investors who are still skeptical, they could consider buying assets that performed ahead during the U.S.-Iran war. He pointed out that Ethereum and BMNR are among his top picks, and Bitcoin is also included among the recommendations. Tom Lee believes that crypto assets have already proven themselves to be a store of value during wartime.
GateNews2h ago
