Open Interest Explained – Basic Introduction

Deribit Bitcoin Options Open Interest Reaches $ 1 Billion

  • After the halving, the leading cryptocurrency exchanges show an increase in the open interest indicator for bitcoin options.

  • This could indicate strong and liquid options markets..

  • Open interest in BTC options on the Deribit exchange reaches $ 1 billion for the first time.

International consortium of news organizations developing transparency standards.

The total value of all Bitcoin options contracts currently open on the Deribit cryptocurrency derivatives platform has reached $ 1 billion.

Deribit, an EU-based cryptocurrency derivatives exchange, has crossed a significant milestone today. For the first time in its history, the open interest indicator for bitcoin futures (BTC) reached the round psychological mark of $ 1 billion.

The growth in open interest in bitcoin options on Deribit looks very impressive. For comparison, as recently as April 20, the total volume of open options contracts on BTC was only $ 522 million..

More and more interesting..

Open Interest is the total number of open-ended contracts for various derivatives such as options and futures. This indicator cannot be called a reliable indicator of the future price dynamics of one or another underlying asset. However, industry participants regularly monitor it to judge the overall market activity, as well as the level of liquidity and the inflow of fresh capital..

The analytical resource Skew, which shared this information with its readers, also noted that similar indicators of open interest are showing growth on all leading trading platforms offering bitcoin options to their clients..

So, for example, if a month ago the indicator of open interest in this derivative on the CME Group was $ 10.4 million, now, according to Skew, it has grown to $ 174 million.

The BeInCrypto editorial staff also reported earlier that over the past couple of weeks, open interest in bitcoin futures has almost doubled, jumping from under 6 thousand to almost 10 thousand contracts and as a result reaching a record high.

Interest doesn’t necessarily mean growth

Overall, this market indicator signals healthy fundamentals in the cryptocurrency market, especially when backed up by other high metrics such as the hash rate on the BTC network..

Over the past month, open interest in bitcoin options has tended to move in tandem with the bitcoin rate. Both indicators grew together, and sank synchronously before the halving. However, we recall once again that this correlation is not so unambiguous and reliable. Growth in open interest does not always indicate upside potential, as traders can open contracts for the expected fall in BTC.

In addition, open interest can even act as a kind of counterindicator. For example, a number of analysts believe that every time open interest on BitMex reaches the $ 1 billion mark, Bitcoin tends to begin a correction. However, it is not yet known whether this rule will apply to Deribit..

Open interest in bitcoin options ...

Do you find the open interest indicator significant for traders? Do you personally pay attention to it and why? Share your opinion in the comments!


All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..

Share Article

By admin