As Bitcoin (BTC) continues its rise, when Bitcoin options reach a new historic stage. Bitcoin options are derivative contracts that give the owner the right, but not the obligation, to buy or sell BTC at a predetermined price.

Bitcoin options crossed $ 1 billion on December 16, according to Skew. Skew announced Thursday on Twitter, stating that Bitcoin Options saw “a first day worth a billion dollars.”

Deribit, the world’s largest cryptocurrency futures and options contract, had the largest volume of BTC options per day at $ 879 million. The stock exchange has become the most popular BTC option, which has historically dominated the Bitcoin options market.

Bit.com, a cryptocurrency derivative exchange owned by Bitmain-backed financial services platform, posted the second largest volume of BTC options in a single day. According to Skew, Bit.com’s maximum size for Bitcoin options was around $ 84 million.

The major global cryptocurrency trading platform OKEx is the third largest BTC options platform on the list, with a maximum options volume of $ 62 million as of December 16.

The Bitcoin options market saw an equivalent rally in 2020, when weekly volumes didn’t reach $ 200 million at the start of the year.

The increase in volume was accompanied by a significant increase in open interest in Bitcoin options, or OI, which means the total number of contracts traded in the market that has yet to be determined. According to Skew, the OI value of Bitcoin options reached nearly $ 6 billion on December 16, up from $ 600 million in early January.

Bitcoin options’ OI has grown steadily through 2020. As previously reported by Cointelegraph, higher OIs are associated with an increase in options liquidity, as well as an increase in the number of market participants. Bitcoin options OI rallies of bitcoin options can also be triggered by major macroeconomic events, such as the hype surrounding decentralized financing and the long-term impact of cutting Bitcoin in half on the markets. Options are a derivative with many possible uses, including insuring existing positions against potential falls or speculating on prices with asymmetric risks and a yield profile.

New record volumes come in the Bitcoin options market as the price of Bitcoin has reached new records all the time. On December 16, Bitcoin set a new record, crossing the $ 20,000 threshold for the first time since 2017. The largest cryptocurrency continued to gain traction, rising briefly to $ 23,500 on December 17th.

Source: CoinTelegraph

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