The cryptocurrency options market is experiencing an unprecedented increase in activity. Data tracked by Switzerland-based Laevitas reveals that nominal open interest in active Bitcoin and Ethereum options contracts on leading exchange Deribit has risen to $20.64 billion.
Bitcoin and Ethereum Options Soar to $20 Billion Historical Highs Amid ETF Excitement
This number is very close to the previous peak recorded on November 9, 2021; On this date, Bitcoin was trading at an impressive price of $66,000.
Essentially, current open interest in terms of contract value far exceeds that of November 2021.
This increase in activity means that flows in the options market due to investors and market makers will have a greater impact on the spot market price.
Recently, it was reported that market makers are taking bearish risks on Bitcoin. In order to offset their overall risk, they may have unintentionally fueled the price increase by purchasing the leading cryptocurrency.
Over the past two weeks, BTC has recorded a 30% gain and is currently trading above $34,000.
Today at 11:00, BTC and ETH option contracts worth $4.5 billion will expire on Deribit. Monthly and quarterly payments can bring volatility to the crypto market.
*This is not investment advice.