Bitcoin (BTC) Options Hit a Historic High: What Does It Mean?

Deribit announced that the nominal value of Bitcoin (BTC) options open positions on its platform reached $15 billion, breaking a record last Friday.

This figure is more than double the amount at the end of September and exceeds the previous peak of $14.36 billion during the October 2021 bull run.

During the previous peak, BTC was trading above $60,000. However, the current price of BTC stands at approximately $37,200. Interestingly, BTC options market open interest has recently surpassed the futures market.

Deribit Commercial Director Luuk Strijers expressed his excitement about this milestone in an email, saying, “We are excited to announce that we have broken a record in nominal open interest in BTC options, reaching $15 billion (an all-time high).”

He also emphasized that this development underlines the growing preference among investors for options as a strategic tool for positioning, hedging or taking advantage of the recent increase in implied volatility.

Options are financial contracts that give you the right to buy or sell an asset, in this case Bitcoin, at a predetermined price for a certain period of time. A call option gives the right to buy, and a put option gives the right to sell.

Options flow is very bullish, with large calls being made in both BTC and Ethereum (ETH).

*This is not investment advice.