Bitcoin Options Trading Volume Reaches All-Time High
Bitcoin options trading volume has hit a record high ahead of the end of the month, quarter, and year. The monthly trading volume for Bitcoin options has reached over $38 billion across major cryptocurrency derivatives exchanges. Deribit has seen $26.7 billion in BTC options trading volume, while OKX and Binance have also experienced an increase in derivatives trading. On Friday’s options expiry, around $7.7 billion worth of options tied to Bitcoin will expire on Deribit.
Largest Amount Ever
Deribit Chief Commercial Officer Luuk Strijers stated that there is a total of over $11 billion in combined Bitcoin and Ether options open interest ahead of Friday’s expiry. This marks Deribit’s largest expiry, with almost $5 billion set to expire “in the money.” Strijers expects above-average hedging and trading activity as well as clients rolling positions to 2024 expiries.
CME Bitcoin Options Trading Volume Hits All-Time High
The Chicago Mercantile Exchange (CME) has also seen a surge in Bitcoin options trading volume. CME’s monthly trading volume for Bitcoin options reached $2.39 billion, with open interest surpassing $2 billion. However, CryptoQuant’s weekly report suggests that bullish bets by derivatives traders are becoming more challenging to maintain, as sell volume is growing more than buy volume in Bitcoin futures markets.
Hot Take: Increased Participation in Options Trading
Options trading in the cryptocurrency market is experiencing significant growth, with record-high volumes observed for both Bitcoin and CME Bitcoin options. This surge indicates increased participation from sophisticated market players seeking hedging and trading opportunities. However, bearish signals are emerging as sell volume outpaces buy volume in Bitcoin futures markets. Traders should closely monitor the market dynamics following the options expiry, with all eyes on the upcoming ETF decision.
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