Bitcoin options trading volume recently tripled in just one day. Derivatives platform Deribit led the charge with nearly USD 880 million.
In recent days, the price of Bitcoin was not the only one to break its all-time high (ATH). Bitcoin options trading volume also exceeded its all-time high, according to data from analytics firm Skew.
One of the investment mechanisms available in the derivatives market is precisely Bitcoin options. Through this product, which people commonly trade at the institutional level, it is possible to buy or sell Bitcoin at a specific price, at a specific point in time.
Bitcoin exceeded USD 20,000 for the first time while the options trading volume reached above USD 1 billion in one day, according to data from the above source.
The total trading volume was USD 1,071 million. That amount represents a 200% increase over the previous day, when the trading volume of Bitcoin options was only USD 356 million, according to a chart from Skew.
In the same way, the data reflects that Deribit widely led the markets where there is trading of the Bitcoin options, moving more than 10 times the volume of its closest follower, the bit.com market.
On the Panama-based derivatives platform, there was a total trading volume of USD 879 million. Deribit has been leading the Bitcoin derivatives market volumes to the same extent.
Open interest figures also reflect the all-time high for the derivatives market. The total open interest volume reached USD 5,814 million, according to data from another chart.
Open interest refers to the buying and selling positions that remain open during the trading of these options contracts.
Increase in Bitcoin Options in Recent Months
Before recently exceeding USD 1 billion in trading volume, Bitcoin options had approached that number on November 26th, shortly after Bitcoin approached USD 20,000 for the first time since 2017.
However, the same as has happened with the price of the pioneering cryptocurrency, interest in this derivative product has grown steadily in recent months.
According to another chart from Skew, daily options trading volume was not even close to USD 500 million during the second half of this year, until mid-October. The only exception was at the end of July.
Since the beginning of November, coinciding with the bullish run, there was a clear increase in daily trading volumes. That behavior echoes the well-known increase in institutional interest in Bitcoin.
MicroStrategy has led that charge with an aggressive Bitcoin investment strategy. Other companies, as well as the changing narrative of financial institutions, seem to give Bitcoin (BTC) a new boost in the financial world.
At the time of writing this article, Bitcoin is trading above USD 22,600, after momentarily breaking the USD 23,000 barrier.
By Alexander Salazar
