The value of Bitcoin
On April 20, there were just $522 million worth of open contracts for the Bitcoin options offered by Deribit. Whilst the increasing open interest in options says little about which way traders are anticipating the price of the underlying asset to move, it does indicate a healthy market growing in liquidity.
In addition to the increasing open interest at Deribit, Bitcoin market analysis firm Skew also shows open interest growing across the major exchanges offering Bitcoin options. In recent weeks, open interest in CME Bitcoin options has also been increasing rapidly.
One month ago, there were just $10.4 million worth of open options at the exchange. Today, Skew reports $174 million in open interest in the derivative products.
Open interest in Bitcoin options over the last month has largely trended upwards in tandem with price. The price dip just before the third Bitcoin halvingBitcoin halving is when the amount of new bitcoin created and earned by miners is cut in half. This happens... More to date coincided with a temporary lull in open interest.
BeInCrypto recently reported on surging open interest in other Bitcoin derivatives. In fact, over the last 10 days, the value of open Bitcoin futuresFutures contracts are literally agreements to buy or sell an asset on a future date and for a fixed price.... More contracts across those exchanges offering them has doubled.
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