Bitcoin derivatives markets are showing renewed activity as traders position for a potential year-end price move.
Data from Glassnode shows Bitcoin perpetual open interest increased from 304,000 BTC to 310,000 BTC
The rise in open interest coincided with Bitcoin briefly touching the $90,000 level earlier this week.
Analysts said the increase reflects growing participation from leveraged traders.
Funding rates on Bitcoin perpetual contracts also climbed sharply during the same period.
Glassnode reported funding rates rose from 0.04% to 0.09% in a short time frame.
Higher funding rates typically indicate stronger demand for long positions in perpetual futures markets.
This combination signals a renewed buildup in leveraged long positioning, as perpetual traders position for a potential year-end move.
Glassnode said.
Bitcoin perpetuals are futures contracts without an expiry date that closely track the spot market.
These contracts rely on funding payments between long and short traders to maintain price alignment.
Rising funding rates suggest traders are willing to pay a premium to maintain bullish exposure.
However, elevated funding can also increase the risk of sudden liquidations if sentiment reverses.
Market observers warned that excessive leverage may signal short-term overheating.
Bitcoin failed to sustain momentum above $90,000 and later slipped back towards $88,200.
Traders are also watching a major options expiry scheduled for December 26.
More than $23 billion worth of Bitcoin options contracts are set to expire.
The expiry ranks among the largest end-of-year options events on record.
End-of-quarter and end-of-year expiries typically generate heightened volatility.
Data from Deribit shows call options are concentrated at the $100,000 and $120,000 strikes.
Put options are heavily clustered around the $85,000 level.
The current put-to-call ratio stands at 0.37, indicating a strong skew towards bullish contracts.
Max pain for the expiry is estimated at $96,000, according to Coinglass.
If prices remain below that level, many bullish positions could expire worthless.
Analysts said the wide gap between spot prices and max pain highlights optimistic expectations.
The coming days are expected to test whether bullish positioning can translate into sustained price gains.
At the time of reporting, Bitcoin price was $87,624.39.