After a few days of pain, the market is bouncing again. BTC and ETH are finding strength, but what’s more surprising is today’s biggest winners are DeFi blue chips. DeFi coins have seen muted price action for months now, and a strong trend could catch several who ditched the sector.
Apes Gonna Ape
Looking at the global open interest (every exchange, every contract, every strike price), we see a concentration of capital at $50K, $60K, $80K, and $100K. This doesn’t necessarily infer bullish sentiment, as for every ape buying an out-of-the-money call, there’s a seller who believes the option will expire worthless. The same goes for the “anti-apes” buying out-of-the-money puts at $20K and $40K.
There’s a prevailing notion in crypto that the strike with the most open interest is where “max pain” is for options sellers. (In other words, the strike with the most OI is where sellers are most exposed t