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The open interest in Bitcoin options sets a new record

June 26, 2020

The Bitcoin (BTC) options market continues to record record open interest this week with a maturity of one billion dollars every day.

According to the data from the chain analysis tool Glass knot and others, the demand for options continues to add to the uncertain mood of the market.

Bitcoin futures open interest hits record

On June 25, open interest in deribit bitcoin futures peaked at $ 98 million in 98 months, while open interest in options is now $ 1.2 billion.

The open interest in Bitcoin options sets a new record
The open interest in Bitcoin options sets a new record

Overall derivatives gains were driven primarily by demand for optionsThis speaks for investor confidence in Bitcoin’s price performance for the rest of 2020.

As Cointelegraph reported last month, when the downward trend characterized the BTC / USD pair similarly to the current conditions, the option data showed only a 9% chance that the record highs of $ 20,000 will return this year. .

However, futures are on the rise. On Wednesday, the CME group also had record open interest in their futures and options.

“The entire open interest of Bitcoin derivatives in CME (futures + options) has just reached a new historical record. This is mainly due to the increased demand for options, “said analyst Arcane Research in a blog post citing data from Skew.

“Friday is a great day in the options market as Bitcoin contracts worth $ 1 billion expire and CME is around $ 300 million.”

Bitcoin options open interest six month chart

Bitcoin options table with six months of open interest. Source: Skew

The climate in the macro markets

The maturities of Bitcoin derivatives historically coincided with price instability. This time, however, the climate of the macro markets seems to be the most important factor.

Given a recent clear correlation between Bitcoin and the stock markets, the analyst filbfilb from Cointelegraph Markets announced this to the traders Nerves related to Covid-19 were the main influence.

“There was a small sale yesterday, stories about miners moving coins, and some comments about tokens moving again. Obviously, however, Bitcoin continues to move mostly alongside COVID stocks and news,” he said to his channel’s subscribers. from the telegram.

Filbfilb went on a 4-hour chart for the BTC / USD pair, adding:

“100/200 day moving average (DMA) crossovers occurred daily, but all 50 DMAs were lost. Assuming the stocks hold today, I hope this will be checked.”

Cointelegraph has a guide to Bitcoin options, which you can find here.