Traders dealing in Bitcoin derivatives are wagering on a continued price rise, disregarding potential dangers in September.

Bitcoin has seen a 3% increase over the past two days, currently trading around the $110,000 mark. This upward trend comes amid a noticeable uptick in open interest, with perpetuals spiking 2.35% to $30 billion in the last two days.

The increase in open interest is in response to traders positioning ahead of this week's employment figures. This passive buying, as opposed to aggressive buying, occurs amid flat cumulative volume deltas. There is a noticeable increase in passive bids at a 10% order book depth.

Market makers are net long gamma, which means an increase in Bitcoin's price will likely be dampened by hedge selling, and price drops will also be minimized due to dealers buying to hedge their positions. This gamma positioning suggests a degree of cautious optimism among traders.

Bitcoin's implied volatility over the next 30 days is holding near 30%, indicating subdued price moves. However, some traders are preparing for potential declines, despite this low implied volatility. The one-week 25 delta skew, a key options gauge, has jumped from 6.75 to 12 overnight, indicating hedging against the risk of a sudden drop.

The immediate-term direction of Bitcoin now hinges on the upcoming Non-farm Payrolls report. A bullish jobs report could limit the "red September" damage but may not spark a major rally, according to Dawson. On the other hand, failure to see a 25 basis-point rate cut by the Federal Reserve at the next FOMC meeting could make September more painful, according to the same source.

Derivatives traders are expecting a slightly more optimistic outlook for Bitcoin in September. Sean Dawson, head of research at on-chain options platform Dervie, has stated that options traders are making bullish bets for the September 26 expiry, specifically at the $120,000, $130,000, and $140,000 strikes. These bullish bets were primarily made by institutional investors and large traders in September 2021, who favoured strike prices around $40,000 and $50,000 as the preferred option strike points.

The historical drag of September's bearish seasonality is forcing U.S. investors to reassess their positions. Despite this, the Bitcoin options market shows bullish bets for late September, suggesting a degree of optimism among traders despite the seasonal challenges.

Traders dealing in Bitcoin derivatives are wagering on a continued price rise, disregarding potential dangers in September.