Cryptocurrency derivatives markets have been seeing significant demand, as daily volumes for bitcoin options cross $ 1 billion on December 17, 2020. Most of the highest turnover ever has been happening on the Deribit derivatives platform, and a major $ 100k strike was introduced on the exchange for September 2021.
While bitcoin spot markets (BTC) touched a record high (ATH) this year at $ 23,777 a penny, derivatives markets have been seeing a lot of action, too. On Thursday, December 17, 2020, researchers from skew.com tweeted about the first-ever BTC option volumes crossing $ 1 billion for the first time.
The aggregate $ 1 billion in daily volume of bitcoin options was derived from exchanges such as Deribit, Okex, Bit.com, CME Group, Ledgerx, Huobi, and Bakkt.
“$ 1bln first day Bitcoin options,” Skew tweets on Thursday. The Skew chart shows Deribit leading record turnover, followed by derivatives markets on Bit.com and Okex respectively.
A Deribit market update sent to news.Bitcoin.com shows that open interest has also seen a record high. Thursday’s BTC options on Deribit clocked over 223,000 BTC or $ 5 billion. At the same time, there was $ 291 million in BTC futures, $ 228 million in flat swaps as well.
“We’ve seen a total turnover of USD 3.5 billion today (rolling 24 hours),” Deribit said on Thursday. “We have seen a total turnover of USD 1.4 billion today (24-hour roll).
Deribit also added:
[The exchange] is in high demand for higher strikes and has just introduced a USD 100k strike for September ’21.
This means that derivatives traders who leverage Deribit can bet on BTC reaching $ 100k using the options contract. Deribit has said that some trades have been accomplished since the contract was launched on Thursday and the call and put options have an expiration date of September 24, 2021.
Many contracts also expire on Christmas day, as Deribit states that “80k contracts or USD 1.85 billion monster expiration” will take place.
To coincide with the action of the heated derivatives market, skew.com also tweeted about the spot market action that occurred on Thursday. “Yesterday’s record-breaking session, $ 3bln + BTCUSD traded across the largest fiat-crypto exchanges,” Skew tweets.
The market researchers too a chart showed on Friday which indicated an 88% probability that BTC prices will be over $ 20k by the end of the year.
What do you think of all the derivatives markets action and the $ 1 billion in daily bitcoin options on Thursday? Let us know what you think of this topic in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons, Skew.com,
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