As the crypto economy sets its sights on half the value of the U.S. dollar, the market for digital currency derivatives is rapidly expanding. Bitcoin futures have surpassed a six-month high, reaching $52 billion, and the options market for encrypted assets has also risen sharply. In addition, the Bitcoin options market shows that traders bet that by December 25, 2020, the probability that the price of BTC will exceed $20,000 is 29%.
At the time of publication, the entire cryptocurrency economy was hovering at a level of just under $500 billion. Although the spot market for cryptocurrencies like BTC and ETH has achieved solid growth, crypto derivatives have aroused great interest.
Data from the Coinalyze website shows that global BTC futures have soared by more than US$52 billion, which is the highest derivatives market in six months. The momentum of Bitcoin futures has reached an all-time high (ATH), and Skew.com researchers tweeted about this milestone.
“Yesterday’s BTC futures daily trading volume hit a record high, more than 20% higher than the previous record,” Skew analysis team Said Thursday.
At the end of 2020, the top three leaders in the Bitcoin futures market include exchanges such as Okex, Binance and Bybit, as Bitmex lags behind exchanges in the fourth place. In terms of open futures contracts, Okex captured $1.1 billion on Wednesday, November 19.
Skew pointed out that there is strong demand for three to six months of upside Share opinions The volatility surface from BTC Skew.com also focused on the Bitcoin options market and the possibility of crypto assets reaching $20,000.
“Possibility of Bitcoin [at] $20k at the end of the year [equals] According to the options market, this ratio is 25%. “
The leading options exchange Deribit is a trading platform that has the largest share of global bitcoin options and discussed the latest demand for bitcoin derivatives. Deribit said on Wednesday afternoon Eastern Time, “There is a lot of speculation about BTC reaching the new ATH by the end of this year.”
The exchange Deribit stated: “The options market shows that by December 25, 2020, the probability that the price of BTC may exceed $20,000 is 29%.” As far as options litigation is concerned, the exchange has seen new transaction records. , Between the Bitcoin and Ethereum markets, Deribit’s total open positions exceed $4.5 billion. Deribit’s statistics also show that the notional value of 194,797 Bitcoin option contracts is US$3.49 billion, while the notional value of ETH options is US$581 million.
There are 25% to 29% of option swaps predicting that the price will exceed $20k in late December. This does not mean that bets can guarantee the price can be realized. However, this does mean that those traders are willing to bet that BTC will reach that point at a certain time.
Traders tend to believe that derivatives markets such as Bitcoin futures and options can help predict future market sentiment. Usually, many traders use futures benchmark indicators or the 3-month annual rolling benchmark of Bitcoin futures to gauge market sentiment. So far, based on futures benchmark indicators, optimism remains high.
What do you think of the recent Bitcoin derivatives market hitting record highs and the possibility of Bitcoin reaching $20,000? Let us know your thoughts on this topic in the comments section below.
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