Deribit: Bitcoin’s range-bound trading driven by the ‘options market’…large positions are capping prices

The options market’s concentration of positions has been cited as a key factor behind Bitcoin continuing to trade sideways around $90,000. The analysis is that structural factors in the derivatives market, rather than spot supply and demand, are constraining near-term price action.

On the 28th (local time), crypto derivatives exchange Deribit said, “The phenomenon of Bitcoin staying around $90,000 becomes much clearer when you look at the positioning structure rather than the price itself.” Deribit explained that volatility is being suppressed as Bitcoin options open interest concentrates at specific strike prices.

Deribit said, “A large portion of current market exposure is being built through options rather than leveraged futures trading,” adding that “traders are participating in hedging and structured trades rather than directional bets.” This suggests a phase in which risk management takes priority over aggressive trend-following.

In particular, large option positions ahead of the Jan. 30 expiry are drawing attention for being clustered near the current price range. Deribit explained, “On rallies, supply emerges to reduce risk, and on declines, demand for position adjustments flows in—creating a structure that traps the price in a narrow range.”

Deribit stressed, “This is not because the market lacks interest or capital,” adding, “Capital is still there, but risk is being managed much more precisely.” Accordingly, it said, short-term price moves are more likely to respond sensitively to changes in options positioning than to macro variables or news.

Total Bitcoin options open interest currently stands at about $38.7 billion, extending its increase this month. Options expiring at month-end amount to roughly $8.4 billion, and the put-to-call ratio is 0.54, with calls dominant. The maximum pain level is formed around $90,000.