Derivatives Markets Show Strong Bullish Sentiment for Bitcoin and Ethereum
Bitcoin and Ethereum have both posted solid gains this year, prompting traders to ramp up bullish bets through options markets.
Bitcoin has surged 29% year-to-date, while Ethereum has climbed 9%. On Deribit, the $140,000 Bitcoin call option commands the largest notional open interest of $2.36 billion, making it the most favored strike price among traders. Additional significant interest is clustered around the $120,000 and $130,000 calls. Conversely, the $100,000 put option, the top choice for bearish hedges, holds only half the open interest of the most popular call, signaling strong optimism in the market.
Ethereum’s options market paints a similar picture. The $4,000 call strike leads with $650.8 million in open interest, followed by the $6,000 call with $280 million locked in. According to Derive, 25% of Ethereum’s options volume over the last 24 hours has been concentrated in calls between $3,000 and $4,000, expiring on July 25. Around 8% of the open interest for that expiry is held in the $4,000 strike.
Dr. Sean Dawson, head of research at Derive, explains: “This heavy call activity indicates a growing consensus among traders that Ethereum is poised for a rapid breakout, with many positioning for leveraged upside.”
The recent passage of the GENIUS Act — a comprehensive regulatory framework targeting stablecoins and crypto assets — is fueling bullish sentiment for Ethereum, particularly around native staking protocols.
Daniel Liu, CEO of Republic Technologies, notes: “We expect a significant shift post-GENIUS, with more treasurers seeking yield through ETH staking and restaking vaults. Furthermore, yield-bearing tokens will evolve into transparent, auditable assets distinct from stablecoins, free from outdated regulatory uncertainties.”
This shift is anticipated to increase transaction volume and fee generation on Ethereum, strengthening ETH’s case as a core institutional treasury asset.
With Bitcoin options showing strong interest in high strike calls and Ethereum traders betting on a breakout, the derivatives market signals growing confidence in further price appreciation for these major cryptocurrencies in the coming months.
