Deribit’s Sees Largest Bitcoin Options Trade

The world’s largest cryptocurrency, Bitcoin was being traded at $13,499 after a rather swift uptrend from $10,000. However, some market participants in the derivatives world appear to be aiming for at least $30,000 in the next three months. Crypto derivatives exchange Deribit revealed that the largest ever Bitcoin options has been filled on the platform.

According to the official tweet, 16,000 BTC contracts traded were traded on the 30th of October in January 2021’s 36,000 calls, and with that, the platform marked a new record of 47,000 BTC contracts traded. The latest development comes at a time when optimistic expectations were found to be quite high due to rapidly increasing institutional participation as well as mainstream adoption.

???? 10k Jan21 calls just crossed, looks like a 1×4 32k/36k Call Ratio.

Largest listed trade ever on Bitcoin options. pic.twitter.com/TKdYhSPnvw

— skew (@skewdotcom) October 30, 2020

Growing bullish sentiment

The ‘call’ option is essentially the right to buy the underlying asset at the strike price on the expiry date and its use in the latest trade depicted a bullish sentiment in the derivative market. However, it is important to note that options are complicated financial instruments. This trade, in general, might not have been executed taking into consideration the volatility aspect rather than Bitcoin’s price. Hence, it also potentially suggested that the individual who placed the trade anticipated a rise in volatility in the short-term

The crypto-analytic platform, Skew also noted,

Bitcoin’s price has surged all the way from the Black Thursday lows of $3,800 to the current level near $13,500 over the eight months, thus noting an increase of more than 250%. But it was the recent market surge, that has revived talks of  Bitcoin hitting new record highs. This positive sentiment seeped through the derivatives sector as well which saw a significant rise in terms of its volume. Particularly, the options space has seen sizeable growth as Bitcoin’s dominance in the market increased.

And due to the latest news, the 24-hour Bitcoin options volume on Deribit’s platform reached a fresh all-time high. This was noted by Su Zhu, the CEO of Three Arrows Capital whose tweet read,

“Last 24hr volume on BTC options on Deribit Exchange at 47k BTC, which is an all-time high 29th Jan 2021 36k strike now 16k BTC open interest”