Crypto derivatives markets are heating up with perpetual open interest rising to 310,000 Bitcoin as prices briefly touch $90,000. The funding rate has increased from 0.04% to 0.09%, signaling a potential year-end move. Bitcoin perpetuals track spot price and increased funding rates signal bullishness but also overheating risk.

Market volatility could increase with a massive $23 billion Bitcoin options expiry on Dec. 26. Calls are focused around $100,000 and $120,000 while puts are at $85,000. The put/call ratio is 0.37, indicating more long contracts. Max pain is at $96,000, with a $7,500 gap suggesting overly optimistic bullish bets.

Read more at Cointelegraph: Bitcoin Perpetual OI Surges As Funding Rates Double