BTC Price Index and Live Chart – CoinDesk”>(BTC) and ether <a data-position="autolink" href="http://coindesk.com/price/ethereum/" title="Ethereum Price

Luuk Strijers, Chief Commercial Officer at Deribit, told CoinDesk that the dollar value of the BTC and ETH option contracts (also known as the notional open interest) was $23.6B on Friday. This is the highest amount ever.

Bitcoin options made up 67%, while ether contributed the remainder. Deribit’s options contracts represent one BTC or one ETH.

“Deribit’s notional open interests have reached a new ATH, with $16 BTC in BTC and $7.6 BETH in ETH outstanding. This totals $23.6 Billion. Deribit, when adding $2.2 billion of perpetuals and futures open interest (OI), has reached the $25 billion mark for the first-time. ),” Strijers told CoinDesk.

Investors can hedge their exposure to the spot/futures markets by using options. Call options give the right, but not the obligation, to buy the underlying asset later at a fixed price. A put option gives the right of sale.

Options trading has three dimensions, which allows investors to wager on the direction and degree of volatility of the expected price, as well as the time. Spot and futures markets have a one-dimensional focus, which is solely on the price direction.

The record open interest in options represents a surge of sophisticated traders on the crypto market, and it promises better price discovery.

Call options accounted for the majority of open interest at press time in bitcoin and Ethereum options. In bitcoin ‘s case a concentration of interest can be seen in the calls at $50,000 strike, $40,000 strike, and $45,000 strike. ‘s case is dominated by calls of $2,300. $2,400. $2,500. and $3,000 respectively.

Calls are consistent with the current rally of both crypto currencies and suggest that there is still room for further gains.

Bitcoin reached $44,000 early this week. This is the highest level since April 2022. The rise was largely due to the optimism surrounding ETFs and the declining yields on U.S. Treasury bonds. The leading cryptocurrency is up over 150% in the past year.

Ether reached $2,400 in early morning trading today, its highest level since May 2022. This brings the total gain for the year to date up to 98%.

Parikshit Miishra is the editor.