Options Traders Bet Big on Bitcoin and Ether, Activity Crosses $20 Billion!

In a thrilling development, Bitcoin and Ether options activity has surged to an all-time high, surpassing an astonishing $20.64 billion. This surge coincides with growing excitement about the potential approval of a Bitcoin Exchange-Traded Fund (ETF).

Here’s everything you need to know.

Deribit’s Milestone

The combined open interest in Bitcoin and Ether options on Deribit, an exchange platform, has now crossed the $20 billion mark. This surge is a strong indicator of the increasing interest in cryptocurrencies, particularly as the likelihood of a Bitcoin ETF approval grows.

To put this in perspective, the current open interest, valued at $20.64 billion, nearly matches the previous peak seen in November 2021 when Bitcoin was trading at a staggering $66,000, a significant difference from its current value of around $34,150.

Key Insights

Luuk Strijers, Deribit’s Chief Commercial Officer, highlights that this achievement is not just significant for Deribit but also reflects the broader growth and rising interest in cryptocurrency options.

It’s important to note that Deribit holds a commanding 90% share of the global options market, firmly establishing itself as a major player in the world of cryptocurrency options.

Also Read: How Will Bitcoin Price React if Spot ETF Isn’t Approved? Here Are The Possible Speculations

Growing Market Maturity

The increasing interest in options signals a maturing market. Options are contracts that give holders the right to buy or sell an underlying asset at a set price on or before a specific date. As options become more popular, they continue to have a greater impact on the cryptocurrency market.

This record-breaking surge in options activity indicates that investors and market makers are gaining more influence over the spot market price. Notably, market makers recently had a net short gamma exposure in Bitcoin, suggesting they may have acquired the leading cryptocurrency to balance their overall exposure, unintentionally driving up the price.

Bitcoin’s Recent Surge

Over the last two weeks, Bitcoin has experienced an impressive 30% surge, pushing its price above $35,000.

Should You Expect Volatility?

Today holds significant importance as billions of dollars’ worth of Bitcoin and Ether options on Deribit are set to expire at 08:00 UTC. This event has the potential to introduce additional volatility to the market.

Read More: Bitcoin Price Analysis: BTC Price Might See 5-7% Pump Over the Weekend If This Happens

It’s interesting to note that traders have shown a preference for ‘in the money’ call options, a trend that gained momentum when Bitcoin was priced at $27,000, ultimately pushing it to $35,000. These changing trends highlight the cryptocurrency market’s rapid evolution and maturation.