According to the latest analysis of Glassnode, the open interest and trading volume of the BTC derivatives market increased significantly in October, especially in the options market. The open interest increased by 107% (US$6.3 billion), which is close to the highest point in history. The welcome option contract appears to be a call option with an exercise price of more than $100,000. The open position of the call option that expires at the end of the year is approximately $250 million to $350 million.
Compared with the huge amount of open positions in call options, the open positions of put options pale in comparison, which is consistent with the overall bullish market sentiment. Although the open interest in futures is close to historical highs, from a macro perspective, trading volume appears to be declining, and it has been so since the May crash. In an environment of high open interest but low trading volume, this may increase the probability of a liquidation waterfall, because once liquidation begins, the current trading volume may not be enough to support a breakthrough.