Open Interest in Bitcoin Options Sets New Record

The Bitcoin Options Market (BTC) continues to post record open interest this week with a maturity of $1 billion a day.

According to data from the Glassnode chain analysis tool and others, demand for options continues to accentuate the uncertain market mood.

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Bitcoin Futures Open Interest Reaches a Record High

On June 25, open interest in Deribit Bitcoin futures reached a three-month high of $98 million, while open interest on options now stands at $1.2 billion.

The overall gains in derivatives have been largely driven by demand for options, which speaks to investor confidence in Bitcoin’s price trajectory for the rest of 2020.

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

However, futures are on the rise, Wednesday saw record open interest in the CME group for its futures and options.

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

„Friday marks a big day in the options market, as $1 billion worth of Bitcoin contracts will expire, with CME’s representing nearly $300 million“.

The climate in the macro markets
The maturities of Bitcoin derivatives have historically coincided with price volatility. This time, however, the main factor at play seems to be the macro market climate.

In light of a recent clear correlation between Bitcoin and the equity markets, Cointelegraph Markets analyst filbfilb told traders that Covid-19-related nerves were the main influence.

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„Yesterday there was some selling, stories about miners moving coins and some comments about tokens moving again, but evidently Bitcoin continues to move predominantly along with COVID’s stocks and news,“ he told subscribers to his Telegram channel.

As a 4-hour chart rose for the BTC/USD pair, filbfilb added:

„100/200 day moving average (MAD) crosses have occurred daily but all 50 MADs have been lost. Assuming that the stock holds out today, I expect that to be verified“.

Cointelegraph has a dedicated guide to Bitcoin Loophole options that can be found here.