Record-Breaking Surge in Bitcoin Options Open Interest
The options trading market for cryptocurrencies is seeing a significant surge, with Deribit reaching $15 billion in Bitcoin (BTC) options, securing an impressive 87% market share and indicating increasing preference for bullish exposure.
Last Friday, the notional open interest in active Bitcoin options contracts reached a record high of $15 billion, more than doubling since late September and surpassing the previous peak of $14.36 billion in October 2021. Currently, the open interest for Bitcoin options is approximately $14.02 billion, pointing to a period of increased activity by sophisticated traders.
This surge in open interest is a sign of a liquid market with numerous participants. However, it doesn’t reveal the market direction or sentiment – bullish or bearish.
Deribit’s Chief Commercial Officer, Luuk Strijers, expressed excitement about the record-breaking achievement, noting the growing preference for options among traders.
BTC Options Market Surpasses BTC Futures Market
The open interest in the BTC options market has now surpassed that of the BTC futures market, standing at around $17.94 billion, as per Coinglass’s data, reflecting the market’s maturation and a growing preference for options in strategic positioning and hedging.
Luuk Strijers sees this as a sign of market sophistication and advises traders to consider settlement impacts and market makers’ hedging activities on spot prices in the evolving landscape.
The ether options market also experienced an increase in notional open interest, reaching $6.83 billion, indicating a similar trend of growing market interest in options trading.
Hot Take
This significant surge in Bitcoin options open interest signifies a growing trend of traders focusing on strategic positioning and hedging in the evolving cryptocurrency market. As options trading continues to gain traction, it reflects the market’s increasing maturity and sophistication, offering investors more opportunities to leverage the market’s potential and manage risk effectively.
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