Open contracts on Bitcoin (BTC) options made its way upto to record highs on Thursday as Bitcoin’s price rose made headway towards $10,000.
Interestingly, data from key cryptocurrency exchanges including Bakkt, Deribit, CME, etc. demonstrates that open interest on options climbed above one billion USD, surpassing the preceding all-time high of nine hundred and seventy million USD registered on 14th Feb, as per Skew, a cryptocurrency and digital asset focused derivatives research firm.
Deribit, the world’s biggest virtual currency options exchange by volume, contributed around ninety percent of the total on Thursday as open positions on the cryptocurrency exchange reached a record high of nine hundred and three million USD.
It is to be noted that the rise in open interest appears to have been instigated by ameliorating request for put options, or bearish plays.
A derivatives analyst in Deribit’s Market Insights channel, Tony Stewart mentioned,
“Post-March crash, put options have been bought for downside protection primarily. As the market has rallied, more interest has entered via increased put accumulation.”
What do you think about the Bitcoin options position touching its all time high amidst Coronavirus and impending Bitcoin Halving? Let us know your thoughts in the comments section below!