Summary
TLDR: Approximately $15 billion worth of Bitcoin open interest contracts are set to expire tomorrow, marking one of the largest expiries in Deribit’s history. The increase in open interest signals growing institutional interest and liquidity in the BTC market ahead of the next halving in 23 days. The anticipation surrounding the halving and its potential impact on supply and price dynamics is more pronounced than ever.
Key Points
1. Approximately $15 billion worth of Bitcoin open interest contracts are set to expire tomorrow, marking the last monthly expiry before the next BTC halving.
2. The current surge in open interest signals a groundswell of institutional interest and deepening liquidity in the BTC market, with options and futures reaching unprecedented levels ahead of the 2024 halving.
3. Open interest is a measure of the nominal value of derivatives contracts, indicating traders’ bullish sentiment leading up to the Bitcoin halving, which is expected to occur in 23 days on Saturday, April 20.