In a significant shift, Bitcoin’s options market has surpassed its futures market, reaching a notional open interest of $17.5 billion, compared to the $15.84 billion in the futures market. This development signifies a maturing market and an increasing presence of sophisticated traders.
As reported by Coinglass, the surge in Bitcoin’s value, doubling this year, has sparked renewed interest in the cryptocurrency market, driven by factors such as safe-haven demand, excitement around spot ETFs in the US, and expectations related to the Federal Reserve. While initial activity focused on Bitcoin’s spot and futures markets, options have gained prominence due to their affordability in betting on price movements.
The US dollar value locked in active options contracts is $17.39 billion, nearly 10% higher than futures open interest. This data highlights a growing preference for options as strategic tools for positioning, hedging, and navigating the evolving market dynamics.
As reported by Coindesk, Luke Strijers, Chief Commercial Officer of Derivit, a leading crypto options exchange, sees this shift as a clear indication of market maturity. He suggests that traders increasingly turn to options for strategic purposes, driven by factors like rising implied volatility.
Bitcoin strives, shows recovery
Amid this bullish momentum, Bitcoin is currently priced at $37,000, showcasing a remarkable recovery from last year’s 65% decline and an impressive 122% surge in the ongoing year. The anticipation of institutional money flooding Bitcoin is a potential driver that could propel its value beyond the previous all-time high of $69,000, possibly reaching $100,000 or even higher.
Another factor contributing to the optimistic outlook is the scheduled Bitcoin halving event for April 2024. Historically, this event, which reduces miners’ rewards by half, has triggered a scarcity effect, resulting in upward price movements. Analysts and enthusiasts alike are optimistic that the upcoming halving event could further bolster Bitcoin’s value in the market.