On December 16, bitcoin broke the US $ 20,000 limit for the first time since 2017, setting a new all-time high. On December 16, bitcoin options trading volume also exceeded $ 1 billion for the first time, according to data from Skew.
First-time bitcoin options trading volume is over $ 1 billion
With the continued boom of bitcoin, bitcoin options are beginning a new milestone. A bitcoin option is a derivative contract that gives the holder the right to buy or sell BTC at a predetermined price but is not an obligation.
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On December 16, bitcoin options trading volume exceeded $ 1 billion, according to data from Skew. Skew announced the news on Twitter on Thursday, noting that bitcoin options began as "the day to celebrate first $ 1 billion in trading volume".
The largest trading volume of BTC options on that day was $ 879 million in the derivatives of the world's leading crypto futures and options exchange. The exchange has become the most popular BTC option exchange, with the bitcoin option dominating the market.
Bit.com is a bit of support for the continent's financial services platform Matrixport encryption currency derivatives exchange, options volume ranked second day of BTC. According to Skew's data, Bit.com's largest Bitcoin options trading volume accounted for approximately $84 million
OKX, the world's leading crypto exchange, is the third-largest BTC options platform on the list with the largest options trading volume of $ 62 million on 16 December.
The bitcoin options market has seen a parabolic growth in 2020, as even weekly trading volume has not reached USD 200 million at the beginning of the year.
When the trading volume has grown, the open interest of bitcoin options (or OI) has also increased significantly. OI represents the number of total open interest in the market that has not yet been settled. According to data from Skew, the OI of bitcoin options reached the $ 6 billion limit on December 16, significantly increasing from about $ 600 million in early January.
Throughout 2020, the OI of bitcoin options has been steadily increasing. As previously reported by Cointelegraph, the higher OI rate is related to the increased liquidity of options and the increasing number of market participants. The rise in bitcoin's alternative OI may also be driven by macroeconomic events, such as the promotion of decentralized finance and the long-term impact of bitcoin on the market. The option is a type of derivative instrument with several potential uses, including providing insurance for existing positions to deal with potential declines or speculating on prices with asymmetric risk-return characteristics.
With the price of bitcoin being a record high, trading volume in the bitcoin options market has set a new record. On December 16, bitcoin broke the US $ 20,000 limit for the first time since 2017, setting a new all-time high. Since then, it has continued to maintain its growth momentum, and it increased to the US $ 23,500 on 17 December.