Bitcoin Surges Past $80K as Futures Premium and Options Soar

• Bitcoin has surpassed the $80,000 mark during North American trading hours.
• The increase in futures premiums suggests a strong inclination towards bullish positions.
• The $80,000 call option on Deribit has gained popularity, indicating potential dealer hedging around this significant price point.

Bitcoin's value has climbed over $80,000 as traders rushed to increase their bullish exposure in derivatives tied to the leading cryptocurrency.

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BTC reached a new high of $80,095, marking a cumulative weekly increase of 15%, the most significant rise since February, according to CoinDesk data. This surge has been largely attributed to Donald Trump's victory in the recent U.S. elections, which has sparked optimism regarding regulatory clarity for the digital assets sector.

The annualized rolling premium in three-month Bitcoin futures on major exchanges like Binance and Deribit has increased along with the price, exceeding 14% for the first time since June, as reported by Velo. The futures basis on the CME also rose past 10% on Friday.

This rise in premium indicates a preference for bullish bets and may attract carry traders looking to capitalize on price discrepancies between markets.

In addition, open interest for the $80,000 strike BTC call option, which provides significant upside potential for buyers above that level, has surpassed $1.6 billion, according to Deribit data. Traders have been flocking to the $80,000 call option since before the U.S. elections, anticipating a breakout before the year's end.

Data from Amberdata indicates that the $80,000 strike has the highest negative gamma, suggesting that volatility could sharply increase once prices hit that level.

Holding negative gamma implies a net short exposure at a specific price point. The concentration of negative gamma at $80,000 means that dealers or liquidity providers may buy into a potential breakout above this threshold, further amplifying bullish volatility in the market.