Glassnode has explained how the Bitcoin options Open Interest has been climbing recently and looks set to explore new all-time highs (ATHs).

Bitcoin Options Open Interest Has Already Bounced Back From Oct Expiry

In a new thread on X, analytics firm Glassnode has discussed about the Bitcoin options market. This segment of derivatives trading involves traders betting on future price moves through contracts giving the right (but not the obligation) to sell or buy the cryptocurrency at a set price.

Earlier, perpetual futures was the main derivatives trading pathway that investors in the sector used, but recently, demand for options has grown enough to challenge the futures market.

One way to gauge interest in options is through the Open Interest, an indicator that measures the total amount of contracts related to the market that are currently open on all centralized exchanges.

Here is the chart shared by Glassnode that shows the trend in the Bitcoin options Open Interest over the last few months:

As displayed in the above graph, the Bitcoin options Open Interest reached a new record on October 31st. Shortly after, however, the metric saw a plunge due to the contract expiry.

Options contracts come with an “expiry” date, on which the contract get either exercised or automatically closed out. A large amount of these expiries coincided on October 31st, which is why the indicator saw a flush.

Interestingly, the options Open Interest has been quick to bounce back since then, with its value already halfway back to the ATH. Thus, it would appear demand for options is still alive and well.

From the chart, it’s apparent that a similar pattern was also witnessed after the previous major expiry, when the metric gradually recovered and explored new records. “The options market open interest looks set to keep printing new ATHs, expiry after expiry,” explained the analytics firm.

In terms of trading volume, activity related to the market has been at notable levels since Bitcoin fell below the $107,000 level, as the below chart shows.

As Glassnode noted:

Options volume has surged since we broke the 107K level and remains elevated showing the constant activities of the traders readjusting their positions and new traders coming in to put on some hedges.

As for whether investors are opening bearish or bullish trades with these moves, data suggests bearish bets, or “puts,” initially rose during the plunge, but then bullish bets, or “calls,” saw a surge as price rebounded. Once again, however, puts have seen a rise, indicating investors don’t trust a bottom has appeared yet.

BTC Price

Bitcoin has retraced its recent recovery as its price is back at $100,900.

Bitcoin is once again at a pivotal moment after briefly dipping below the $100,000 level on Tuesday, testing one of the most important psychological and structural supports of the cycle. The market remains tense as bulls attempt to defend this zone amid rising volatility and persistent selling pressure. Momentum has clearly slowed, and traders are now looking for signs of stabilization as the next directional move takes shape.

According to top analyst Darkfost, a major shift is unfolding beneath the surface — Bitcoin’s open interest across major centralized exchanges continues to struggle to recover. Since the mass liquidation event on October 10, when over $10 billion in leveraged positions were wiped out, the use of leverage has cooled significantly. This has resulted in the largest 30-day decline in open interest of the entire cycle, signaling a widespread de-risking among futures traders.

While this sharp decline reflects shaken confidence, it may also serve a constructive purpose. The unwinding of excessive leverage often precedes healthier, more sustainable price action, helping to flush out speculation and rebuild stronger market foundations.

Leverage Flush Deepens as Exchanges See Billions in Open Interest Wiped Out

Darkfost highlights that Binance has been at the center of this leverage unwind, recording a massive $4 billion decline in Bitcoin open interest over the past month. Other major platforms have faced similar drawdowns, with Bybit losing over $3 billion and Gate.io more than $2 billion. This widespread contraction underscores how aggressively leverage has been removed from the market following October’s liquidation shock.

Back on October 10, global open interest dropped by more than $10 billion within hours, one of the most severe leverage resets of the cycle. Historically, after such dramatic events, traders rebuild positions quickly as volatility cools. However, this time the rebound has been notably absent — open interest remains depressed, suggesting that market confidence is still fragile.

The ongoing correction continues to discourage over-leveraged activity, forcing traders to adopt more conservative positioning. While this has amplified short-term downside pressure, Darkfost notes that these deleveraging phases are ultimately healthy.

They wash out excessive speculation, allowing stronger hands to reaccumulate and laying the groundwork for the next sustained rally. In the medium term, this compression of leverage tends to create a more stable, organic market structure — one driven by spot demand rather than derivatives-driven momentum.

Bitcoin Retests Key Support After Heavy Selling

Bitcoin is showing signs of stabilization after a sharp sell-off that briefly pushed prices below the critical $100,000 level earlier this week. As of now, BTC trades around $103,000, attempting to recover but facing persistent resistance from the short-term moving averages.

The chart shows that Bitcoin remains well below the 50-day (blue) and 100-day (green) moving averages — both now acting as dynamic resistance zones around $110,000. The 200-day MA (red) near $102,000 currently serves as the key support level, and a sustained close below it could open the door to deeper downside, potentially toward $95,000.

The recent bounce reflects short-covering and some dip-buying activity, but momentum remains weak. The market structure suggests a shift from bullish to corrective, as lower highs continue to form. For bulls to regain control, Bitcoin would need to reclaim the $110,000–$112,000 region — where heavy liquidity and previous breakdown levels align.

Focus remains on whether buyers can hold the $100K–$103K zone. Losing this range would likely trigger another wave of liquidations, while a successful defense could provide the base for a mid-term recovery rally. The market remains fragile, with sentiment still leaning cautious.

Featured image from ChatGPT, chart from TradingView.com