Bitcoin Options Open Interest Reaches New All-Time High

As a huge quarterly expiry is coming up ahead, open interest in Bitcoin (BTC) options has spiked high. According to the latest data shared by the derivatives analytics platform Skew, Bitcoin options open interest has skyrocketed to make a new all-time high on September 23, 2020.

Bitcoin (BTC) Options open interest climbs over $2 Billion

Skew analytics has reported that total Bitcoin options open interest has hit a new all-time high by climbing over $2 billion figure. Open interest in Bitcoin options has surged high ahead of a major quarterly expiry.

Source: Skew

Reportedly, a huge number of options contracts are going to expire. On Friday, September 25, 2020, more than 87,000 Bitcoin (BTC) options are expected to expire. It is approximately 47% of bitcoin options that will expire on Friday.

According to the data presented by Skew Analytics, out of those bitcoin options that are set for expiry, approximately 67,000 (77% of options) are present on Deribit, the Bitcoin futures and options exchange. While on the other hand, on the same day, around $460,000 Ethereum (ETH) options are also going to expire and the options exchange Deribit also holds 90% or 414,000 worth of ETH options as well.

Many traders and analysts in the cryptocurrency community believe that this huge bitcoin expiry will bring volatility for the world’s leading digital currency Bitcoin (BTC).

Bitcoin is currently trading slightly bearish at around $10,300, at the time of writing, with a change rate of -1.72% in 24 hours. The first-ranked digital currency has been trying to break through the past resistance level of $11,000 in recent times but it has constantly failed to maintain above this resistance level.

Since, the time it has plunged down from the $11k mark, it has not been able to sustain its performance. The coin’s price has been fluctuating a little bit but it has been mostly trading in the $10,100 – $10,300 area where it is currently residing. In order for Bitcoin to reclaim $11,000, it is crucial for the coin to turn the $10,500 resistance level into its support level.

Leave a Reply

Your email address will not be published. Required fields are marked *