Share:

Bitcoin (BTC) and ether (ETH) options trading on Deribit are hotter than ever.

As of Friday, the cumulative dollar value locked in the number of open or outstanding BTC and ETH options contracts, also known as notional open interest, was $23.6B, the highest ever, Deribit’s Chief Commercial Officer Luuk Strijers told CoinDesk.

Bitcoin options accounted for 67% of the tally, with ether contributing the rest. On Deribit, one options contract represents one BTC and one ETH.

“Deribit options notional open interest has reached a new ATH with $16 billion in BTC options and $7.6 billion in ETH options outstanding, resulting in a total of $23.6 billion. When adding the $2.2 billion in perpetuals and futures OI, Deribit has for the first time reached the $25 billion milestone (total now $25.8B!),” Strijers told CoinDesk.

Options allow investors to take leveraged bets on the underlying asset and hedge their spot/futures market exposure. A call option gives the right but not the obligation to purchase the underlying asset at a predetermined price at a later date. A put gives the right to sell.

Options trading is three-dimensional, allowing investors to bet on the direction of the price move, the degree of expected price volatility and time. The spot and futures markets are one-dimensional, focusing just on price direction.

Therefore, the record options open interest represents an influx of sophisticated traders in the crypto market and promises better price discovery.

At press time, most open interest in Bitcoin and ether options was concentrated in call options. In Bitcoin’s case, a large concentration of open interest is seen in calls at $50,000, $40,000, and $45,000 strikes. In Ether’s case, calls at $2,300, $2,400, $2,500 and $3,000 are the most popular.

The bias for calls is consistent with the ongoing rally in both cryptocurrencies and suggests expectations for continued upside.

Bitcoin topped the $44,000 mark early this week, reaching the highest since April 2022, largely on the back of ETF optimism and receding U.S. Treasury yields. The leading cryptocurrency has gained over 150% this year.

Ether neared $2,400 early today, the highest since May 2022, extending the year-to-date gain to 98%.


All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities. CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

PEPE price inches closer to 2024 peak with top crypto exchanges teasing PEPE memes on X

PEPE price inches closer to 2024 peak with top crypto exchanges teasing PEPE memes on X

PEPE’s social dominance and relevance have been increasing since February 20. This week, top cryptocurrency exchanges have shared PEPE and related memes in tweets on their official X handle. 

More PEPE News

SEI, Omni Foundation propose standard to unify Ethereum NFTs

SEI, Omni Foundation propose standard to unify Ethereum NFTs

SEI and Omni Foundation could help NFTs across the Ethereum ecosystem transition to scaling solutions and rollups. The two have proposed a new token standard, xERC-721, with a “code minimized” upgrade to the current standard. 

More Cryptocurrencies News

Bitcoin Weekly Forecast: BTC likely to correct to $50,000 soon

Bitcoin Weekly Forecast: BTC likely to correct to $50,000 soon

Bitcoin price has formed a potential top signal that forecasts a sell-off. The weekly chart also points to a bearish divergence, which adds credence to the bearish outlook. Investors can expect BTC to consolidate between the $52,062 to $45,160 levels.

More Bitcoin News

XRP price plunges as Kraken cites SEC v. Ripple lawsuit in its legal battle against the regulator

XRP price plunges as Kraken cites SEC v. Ripple lawsuit in its legal battle against the regulator

XRP price inches closer to support at $0.52 after the recent developments related to the SEC’s lawsuit against Ripple. Kraken cited a key part of the SEC’s lawsuit against Ripple that could impact the outcome of its own legal battle against the regulator. 

More Ripple News

Bitcoin: BTC likely to correct to $50,000 soon

Bitcoin: BTC likely to correct to $50,000 soon

Bitcoin price has formed a potential top signal that forecasts a sell-off. The weekly chart also points to a bearish divergence, which adds credence to the bearish outlook. Investors can expect BTC to consolidate between the $52,062 to $45,160 levels.

Read full analysis

BTC

ETH

XRP