Record-Breaking Surge in Bitcoin (BTC) Options Open Interest
The options trading market for digital currencies is seeing a whole lot of surge, with Deribit reaching $15 Billion in Bitcoin (BTC) alternatives, securing an impressive 87% market share and indicating increasing preference for positive trend exposure.
Last Friday, the notional open interest in active Bitcoin (BTC) 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. As of now, the open interest for Bitcoin (BTC) 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. Nonetheless, it doesn’t reveal the market direction or sentiment – positive trend or bearish.
Deribit’s Chief Commercial Officer, Luuk Strijers, expressed excitement about the record-breaking achievement, noting the growing preference for options between traders.
Bitcoin Options Market Surpasses Bitcoin Futures Market
The open interest in the Bitcoin options market has now surpassed that of the Bitcoin 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 likewise 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 whole lot of surge in Bitcoin (BTC) options open interest signifies a growing trend of traders focusing on strategic positioning and hedging in the evolving digital currency market. As options trading continues to win traction, it reflects the market’s increasing maturity and sophistication, offering investors more opportunities to leverage the market’s probable and manage risk effectively.
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