Bitcoin Options Volume on Deribit Already 25% of 2020 Total

www.coindesk.com 2021-01-13 23:30
Reading time: ~2 m

Deribit traders have already recorded 25% of last year’s entire bitcoin options volume.

  • After a record-setting $2 billion traded Monday, the total volume for bitcoin options on Deribit reached $14.5 billion Tuesday morning.
  • In 2020, all bitcoin options trading totaled just less than $57 billion.
  • Contributing to its wild growth in the past month, the Panama-based exchange now offers traders sky-high bets of bitcoin reaching $100,000, $200,000 or even $300,000 by December.
  • At the end of December 2020, Deribit investor and Three Arrows Capital CEO Su Zu predicted in 2021, "Options markets volume to become over 50% of all crypto derivatives markets." Perpetual cryptocurrency futures markets reported over $190 billion in the past 24 hours, according to CoinGecko.
  • Concurrent with soaring volume, bitcoin's implied volatility is surging, according to data from Skew. The one-month gauge currently above 135%, its highest level since March 2020 just after bitcoin's crash below $4,000.
  • Ether options, although a significantly smaller market, are experiencing similar growth with a record $264 million traded on Jan. 4, per data from Skew, a more than 2,700% increase from three months ago.
  • Deribit routinely accounts for over 85% of daily options volume, per Skew data, with OKEx typically the second largest bitcoin options market representing around 5% of daily volume.
  • Outside of derivatives markets, all cryptocurrency trading volumes across the board are soaring, with spot markets reaching record levels, even passing 2017's peak, per CoinDesk Research.