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Cryptocurrency markets have seen a significant rise in options trading, with Deribit (BTC) options hitting an all-time high of $15 billion last week. The platform has consolidated its dominant position, with an 87% market share in the BTC options space.
This important milestone comes against a backdrop of increased strategic trading activity and rising implied volatility. The increase in options trading volume has now surpassed that of futures, marking a notable shift in traders’ preferences. According to Paradigm, there was aggressive positioning for bullish results, while Amberdata highlighted large block trades and the execution of straddle strategies.
These strategies aim to capitalize on premium gains during periods of increased volatility, such as those experienced during the summer months. Despite the record pace, open interest – a measure of active contracts – fell slightly to $13.8 billion on Friday. This drop came even as the price of bitcoin made a considerable jump, from $25,000 to $38,000.
Market optimism appears to be supported by anticipation of the approval of a bitcoin spot ETF, which contributes to the bullish sentiment. Ether (ETH) options also saw growth in open interest, reaching $6.83 billion. While this is a significant increase, it has not yet surpassed the record levels seen after ‘s transition to a proof-of-stake protocol.
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