Deribit exchange Bitcoin (BTC) options recorded the highest ever monthly turnover with over $1.5 billion options traded over the first month of 2020. As we enter the final three months heading to the halving, Bitcoin bulls will be pleased with the interest being shown in Bitcoin derivatives as its signals a possible uptrend in the market to test 2019 highs at $14,000 USD.
However, the price still lingers around the $9,300 USD resistance mark with a clear move yet to form, is the Deribit options turnover spike providing a bullish signal for BTC?
#Bitcoin Options have officially taken off. On these charts, you can see 70% month on month growth in USD options turnover.” – Deribit exchange
Deribit records highest monthly options turnover ever
In what many analysts describe as a bullish move for BTC, Deribit January option contracts turnover spiked to $1.5 billion USD, representing an all-time high figure. The high figure was achieved following the price of Bitcoin crossing above $9,000 for the first time in three months with over 180,000 contracts traded on the exchange, also an ATH.
The total number of BTC option contracts traded on the platform grew 46% month on month with the Ethereum option contracts registering a 64% increase since December 2019, with the total number of contracts standing at 320,000 ETH contracts.
Deribit remains the largest crypto options provider controlling 86.3% of the total open interest in crypto (BTC& ETH) options as at 31st January 2019. LEDGER X, OKEx and CME options control the rest of the market with 6.7%, 6.4% and 0.6% dominance respectively.
Deribit launches daily options, a bullish future for BTC?
The increased interest from investors on Bitcoin options signals a continuation of the bullish run witnessed in the market in the past month. Moreover with Deribit announcing new derivative products backed by Bitcoin, the market looks ripe to test the 2019 high at $14,000 before halving in May.
We've just launched our first daily option.
BTC-4FEB20 ??
— Deribit (@DeribitExchange) February 3, 2020
In the early hours in the Americas on Monday, Panama based Deribit announced the launch of daily BTC options with zero delivery and expiry fees. The official statement reads,
“Zero Delivery/expiry fees for Deribit Daily Options (usually 0.02% of underlying capped at 12.5% of the value of the option). Zero fees do not apply to regular weeklies/monthlies or quarterlies expiring on Fridays.”
