Bitcoin Call Option Drops $10,000, Ceiling Shifts Lower

The most popular Bitcoin call option has seen its price drop by $10,000. The shift in positioning could slow down Bitcoin's ascent above $70,000.

Open interest in options is a metric that gauges the dollar value locked in the number of call and put contracts at various strike levels. Currently, the most popular call option is at $70,000 with an open interest of $1.63 billion, according to data source Metrics. This marks a significant change from six months ago when the $80,000 call was the heaviest.

Analysts point out that the ceiling for Bitcoin's price has likely shifted lower to $70,000. Dealers holding a 'net long gamma exposure' above $70,000 would need to short or sell into strength above 70,000 to stay neutral or hedged, capping how fast BTC can run once it gets up there.

Bitcoin was recently trading near $64,100, down nearly 1% since midnight UTC. Other major cryptocurrencies saw similar losses, while the Nasdaq 100 index futures fell 0.5%. Experts warn of a risk of a sudden sell-off amid financial market shocks, but advise buying in a quiet market at less than half of peak levels.