Bitcoin News

Bitcoin Rally To $37,000 Sparks Open Interest Surge


An apparent increase in demand for safe-haven assets, rising interest in Bitcoin ETFs in the US, and anticipation of a more accommodating position from the Federal Reserve were the purported drivers of the cryptocurrency market’s recovery this year, which led to a significant gain in the value of Bitcoin.

While the spot and futures markets for bitcoin were at the center of attention at first, options related to the cryptocurrency have recently come to the fore. By introducing a new facet to the market dynamics, these options give a convenient way to speculate on possible price swings.

According to figures from Glassnode, the open interest in Bitcoin’s options has reached a new high point by exceeding $16 billion. This big increase in open interest happens at the same time that Bitcoin’s price successfully reclaimed the $37,000 mark on November 15.

Options Open Interest On The Rise

The rise in open interest for options shows that the market is more active and investors are interested in Bitcoin futures. The $16 billion figure shows how important options trading is becoming as a major part of the bitcoin market.

On November 10, the Options Open Interest, a measure of the total amount of money invested in options contracts, reached a record high of $18.05 billion, or 491,000 Bitcoin, Coinglass data shows.

Deribit, which has contributed about $14.5 billion, is mostly responsible for this surge, according to Coinglass.

The cryptocurrency derivatives exchange has also disclosed a nearly peak value of $14.6 billion for its entire open interest notional value.

Source: Coinglass

Bitcoin was trading at $36,550 at the time of publishing. Using statistics from CoinMarketCap, the last time BTC traded at the $37K price was in May 2022. The coin has gained 5% in value over the past day.

In a noteworthy development, BTC options open interest has outpaced that of BTC futures, marking a significant stride in what Deribit described as “increasing market sophistication.”

The platform reported this shift earlier in the week, with Deribit’s Chief Commercial Officer, Luuk Strijers, emphasizing that the surpassing of BTC options open interest over futures open interest serves as a clear indicator of the market’s maturation.

BTCUSD trading a little over $36K today. Chart:

Bitcoin And The Broader Shift In Market Dynamics

According to Strijers, this transition suggests a growing inclination among participants to…

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