Bitcoin options volume at Deribit already exceeds 25% of 2020 total


In the first two weeks of 2021 alone, bitcoin futures broker Deribit has already reached 25% of the total volume recorded in 2020, according to the latest data released.

In addition to reaching a daily record of $ 2 billion traded on Monday (11), the total volume in the last two weeks was $ 14.5 billion as of Tuesday morning. In 2020, all bitcoin options traded on Deribit totaled just under $ 57 billion.

Contributing to its huge growth last month, the Panama-based exchange now offers traders sky-high bitcoin bets reaching $ 300,000 on December 31.

At the end of December 2020, Deribit investor and CEO of Three Arrows Capital, Su Zu, predicted that by 2021, β€œthe volume of options markets will become more than 50% of all cryptocurrency derivatives markets.” Perpetual cryptocurrency futures contracts have recorded more than $ 190 billion in the past 24 hours, according to CoinGecko.

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Simultaneously with the increase in volume, bitcoin’s implied volatility is increasing, according to data from Skew. The one-month indicator is currently above 135%, its highest level since March 2020, just after bitcoin fell below $ 4,000 at the start of the covid-19 crisis.

Daily volume of bitcoin options at Deribit.  Source: Skew and Coindesk Research.
Daily volume of bitcoin options at Deribit. Source: Skew and Coindesk Research.

Ethereum options, while representing a significantly smaller market, are experiencing similar growth with a record $ 264 million traded on January 4, according to Skew data, an increase of more than 2,700% over three months ago.

Deribit routinely accounts for more than 85% of the daily options volume, with OKEx typically second in the options market, representing about 5% of the daily volume.

Outside the derivatives markets, all cryptocurrency trading volumes in general are rising, with spot markets reaching record levels, even past the 2017 peak, according with CoinDesk Research.

See also: Bitcoin is in a bubble, says CEO of DoubleLine Capital


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Thomas Miles

Cryptocurrency is the most recently discovered currency which will be likely at the help of modernization across the next few decades. With a limited control from the government, the crypto market is independent of many features of a sound market as we know it. Thomas brings these stories to us by weaving them into articles of general importance to all those looking at the fluctuations in the market, or new entries. Thomas is also the founder of Bulletin Bits and is an excellent leader. His leadership is the kind that makes him the most knowledgeable and experienced on the team. His wonderful work ethic and attitude are worthy of imitation!

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