Bitcoin Options Market Signals Mixed Sentiment Amid Surging Open Interest

The Bitcoin derivatives market was electrified on April 22, 2025, by a stunning $2.2 billion surge in BTC options open interest.

Options open interest climbed to $30.7 billion—its highest since March—from an already substantial $28.5 billion the day before. Such a ramping-up of trader engagement and speculative interest in this vehicle is surely positive in principle, if only for the fact that it pushes price discovery frontiers further into the future.

Price-wise, this was happening in clear concert with a Bitcoin spot price that recovered nicely above the $90,000 level. Futures open interest was also seen to be on the incline, moving in the direction of the natural $100,000 target. All in all, a ripe open interest environment, for both spot and Bitcoin futures.

On first glance, the data from options draws a decidedly bullish picture. The put-call open interest ratio is currently at 0.59 with call open interest at a dominant $19.3 billion and only $11.5 billion in puts. This skew toward call options—always a sign of rising-bulls—suggests that the traders are positioning up and away, as we used to say on the floor, for the next Bitcoin price $UP. The call picture gets better when you consider that call open interest is growing faster than put open interest, another sign (if you are a bull) that $BTC is about to make another significant move.

Notwithstanding these clear signs heralding bullish behavior, one basic technical metric is sending a warning signal. The 25-delta skew on BTC options—a measure of sentiment and relative demand for upside versus downside protection—has morphed from neutral to bearish across the curve. This change in shape suggests that, even as investors are loading up on bullish positions, they are at the same time also positioning themselves for a potentially bearish outcome.

Essentially, the 25-delta skew compares the implied volatility of out-of-the-money calls versus puts. When the skew turns negative or bearish, it indicates that puts are becoming relatively more expensive than calls. This usually means traders are hedging against downside movements. Or they might be more willing to pay for downside protection.

This paradox—a rising market with increasing hedging—could imply one of two scenarios. First, traders are perhaps locking in profits and protecting themselves against a sharp reversal after the recent price run-up. Second, volatility sellers are perhaps offloading upside risk by selling calls into market strength, which, if it is happening, leads to a distortion in skew despite strong call demand.

In either scenario, a combination of prices that are on the rise, a burgeoning open interest across both futures and options, and a not-so-casual options skew reveals a market that is both optimistic and risk-aware.

The implications are quite meaningful. In past cycles, a swift uptick in options open interest and a change in skew have occasionally signaled upcoming volatility. That’s when markets weighted with options take on sudden moves, and the more the Bitcoin market rises, the more it’s looking like something very similar is in play right now.

Earlier, I mentioned that skew has risen to 5.4%. Well, that rise has actually been quite significant. And for your reference, here’s the way skew looks now compared to the last several months.

Additionally, the present construction might also represent institutional participation. Big entities frequently utilisez options to protect spot or futures liabilities, and the current pessimistic skew might be the consequence of some rather refined risk management going on behind the curtain. With Bitcoin becoming ever more integrated into mainstream portfolios—via ETFs, structured notes, and the like—these kinds of mixed messages from the options market are likely to become more commonplace, and more impactful.

To sum up, although the BTC options market is clearly in an advanced stage of development—with open interest at a multi-month high and an obviously bullish options setup—the construction of delta skew shows that traders are not as euphoric as the open interest suggests they should be. It’s a market that’s a good bit in the money, but not blindly so. Sentiment can change by the hour, as with all things Bitcoin, and for now, it seems the investors are riding the wave upward with one hand on the parachute.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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