Deribit Exchange Sees Surging Bitcoin Options Activity as Price Breaks $114K

Bitcoin's unstoppable rally continues, smashing through the $114,000 barrier for the first time as traders position for a run at $120,000. Open interest has surged around $115,000 and $120,000 strike prices, with longer-dated options targeting $140,000 by September and $150,000 by year-end. The cryptocurrency has gained 20% year-to-date, tracking the S&P 500's 30% recovery from April lows.

The rally accelerated after the largest short liquidation since May 7 wiped out $447 million in bearish positions. Chris Newhouse of Ergonia notes the record-breaking move came as overextended shorts were forced to cover. While liquidation pressure moderated to $76.5 million when Bitcoin surpassed $112,000, the market remains solidly bullish.

Institutional demand and changing political dynamics appear to be driving the breakout. Deribit's options platform shows traders are positioning for continued upside, establishing the derivatives exchange as the key arena for Bitcoin's next major price movement.