The derivatives market has navigated a week of declining Bitcoin prices without the typical leverage reduction that signals stress.
In BTC terms, futures open interest slightly increased, with notional following the 3.36% decrease in spot price. Meanwhile, options interest rose for two consecutive days during this downturn. This scenario suggests repricing and hedging rather than deleveraging.
Despite a $3,910 drop in spot from $116,403 on September 18 to $112,493 on September 24, futures positions remained steady. Open interest in BTC contracts climbed from 720,810 BTC to 724,990 BTC—a rise of 0.58%.
Measured in dollars, these positions fell from $83.91 billion to $81.58 billion—a decline of 2.78%, mirroring the direct impact of lower spot prices.
The pattern remains consistent
The dollar notional peaked at $85.79 billion on September 19 before gradually decreasing until closing at the end of September 24th’s trading session. Contract units reached their highest point at 734,350 BTC on September 20 and hit a low near 720,680 BTC by September 23 before stabilizing again—indicating repricing rather than forced position reductions.
Options open interest decreased to reach its lowest point at Sepember22nd with495960BTCbut then reversed sharply: +13_870BTConSeptember23rdand+9_810BTConSeptember24th.Bytheendoftheweek,totaloptionsopenintereststoodat519640BTC,increasingby1_97%fromSep18
This increase coincided with spots dipping into low$112000s,suggestinghedgesandstructuredflowratherthanpurelyspeculativeactivity.Dealers’gammaexposurelikelyturnedmorenegativearoundSep23meaningincrementaloptiondemandcouldreinforcedownsidestickinesswhilereducingpotentialforcleanupsidebreaks
Divergent Trends Observed Across Venues
CMEcarried142210BTCofoiworth15point98billionwitha24hourcontractionof223percentwhileoffshorevenuespainteddifferentpictureBybitrose092percentOKXclimbed032percentKuCoingained085percentBinanceslippedslightlyby027percentshowingdivergenceinlinewithparticipantprofilesinstitutionscuttingbackonsizeatCMEcryptonativeaccountsmaintainingorevenaddingmodestexposureoffshoreOpeninteresttovolumeratiosreinforcedthemeofstickypositioningshowcasingbothCMEandBybitabove13whileKuCoinremainedabove16implyingoiremainedelevatedrelativeturnovermosttellingdaywasSeptemebr23rdSpotdropped229percenetto112604futuresnotionallost102billionBTCOIheldnearlyflatoptionsOIjumpedsharplyafuturesledliquidationwouldhaveclearlyshownreductionsinBTCOIbroadernotionalerosioninsteadmixshowspatientfuturesbookspairednewoptionhedgesOnSeptember24spotbarelybudgednotionaleasedagainoptionsOIcontinuedclimbingthatcombinationleavesthemarketpositionedmoredefensivelywithoutanysignsofforceddeleveragingCorrelationsacrosstheweekconfirmthismechanicalimportantdifferencePriceanddollardenominatedfuturesOImovedinnearlockstepwhilepricebtcOIbArelycorrelatedOptionsOIcarriedaslightnegativecorrelationwithspotreflectingtiminghedgedemandintoweaknesstheserelationshipssuggeststeadymarketstructureratheroneatriskdisorderlyliquidationTheSetupMattersTwoWaysFirstbecausethereisnooverhangcrowdedlongsstabilizationspotcanexpandnotionalquicklywithoutrequiringfreshpositioningsuchamplifiespotentialreliefmovesbuyersreturnSecondbecauseoptionhedgesexpandedintoweaknessbouncescouldfeelcappeduntilthose structuresdecayarerolloffHedgingactivitymaythereforesuppressintradayvolatilitywhileskewmarkettowardslowerstickierpriceactionVenueSplitAddsAnotherLayerNuanceIfCmecontinuesbleedoibybitoKxaddbasisfundingdifferentialsmaywidenduringustradinghoursrotationcreatestacticalrelativevalueopportunitiesbetweenregulatedandoffshoremarketsespeciallyperiodsunetfinflowsmacrodrivenflowsWhatRemainsAbsentHoweverAnyTracePanicFuturesbtctermsholdingoptionshedgesbuildingmarkettopositionabsorbnextdirectionalpushWeekClosesBitcoinPositionDefensivelyOrderlySpotsitsnear112500futurersunitsstableoptionsHedgescushiondownsideWhetherpricestabilizesweakensFurtherPositionSetRespondCleanRatherForcefullyMoveAboveMid113000swouldquickexpansionationalLightenHedgeDragWhileDipLowerWouldLikelySeeOptionsContinueBuildEitherScenarioMarketEntersNextStretchHedgedRatherFragile