Bitcoin (BTC) price spikes to new lifetime highs above $100K, driving record activity in the Deribit options market.

As bitcoin's (BTC) price jumped to new lifetime highs above $111K during Thursday's Asian trading hours it spurred record activity in the Deribit-listed options market.

output: "Don't be surprised if buying activity picks up across the spectrum of products tied to BTC," CoinDesk said in Tuesday's edition of the Crypto Daybook Americas, presenting a bullish case for bitcoin.

As bitcoin's (BTC) price hit new all-time highs of over $111K during Thursday's Asian trading hours, it spurred record activity in the Deribit-listed options market.

The notional open interest (OI), or the dollar value of the number of active or open options contracts, hit a record of $42.5 billion, Deribit CEO Luuk Strijers told CoinDesk.

Options are derivative contracts that provide the right but not the obligation to buy or sell the underlying asset at a predetermined price at a later date. A call provides the right to buy, representing an implicit bullish bet on the market, while a put option offers insurance against price declines.

BTC's rise to record highs saw traders pursue gains through higher strike call options.

"Most traded strikes in the past 24 hours: $120K and $130K upside calls for May and June expiry. Highest OI now sits at the $110K, $120K, and $300K June 27 strikes - showing bullish conviction," Strijers said.

Deribit is the world's largest crypto options exchange, handling nearly 80% of the global crypto options activity. The exchange also offers trading in futures and spot markets. The overall open interest across crypto options and futures segments has also hit a record high of over $45 billion.

Coinbase is planning to acquire derivatives exchange Deribit in a $2.9 billion deal, according to a report by The Block. The report claims that the two companies have reached an agreement on the acquisition, which is expected to be announced on Thursday.

The integration of Deribit's derivatives exchange into Coinbase's platform would expand the U.S. crypto exchange's offerings and footprint in the derivatives market.

Coinbase has applied for approval to offer a U.S. derivatives exchange, aiming to introduce Bitcoin and Ethereum futures and options to its platform. The company's entry into the derivatives market is a significant step in its efforts to become a comprehensive digital asset financial services platform.

Deribit, known for its extensive options market, handles a substantial portion of the global crypto derivatives volume. The exchange's open interest in options has hit a record high of over $42 billion, a factor that could contribute to a further rise in BTC.

"Don't be surprised if buying activity picks up across the spectrum of products tied to BTC in the coming days as traders close out some of their positions and open new ones," CoinDesk stated in its Crypto Daybook Americas.

Furthermore, the report highlights the increasing interest in crypto derivatives products, evident in the exponential growth of Deribit's volumes over the past year.

"Deribit's volumes have grown exponentially over the past year, with a 330% increase in revenue and a 280% surge in operating profit in 2023 compared to the previous year."

The report also notes that Deribit's revenue stream is relatively balanced between its options and futures products, and the exchange's net profit margin is "impressive."

"Deribit's revenue is split relatively evenly between its options and futures products, and the exchange boasts an impressive net profit margin of over 50%.”

The report concludes by stating that Deribit's performance in 2023 has been "nothing short of phenomenal."

"Deribit's performance in 2023 has been nothing short of phenomenal, with the exchange's success a testament to the increasing demand for crypto derivatives products and Deribit's ability to innovate and cater to the evolving needs of its users."

Coinbase's acquisition of Deribit would mark a significant expansion of its offerings in the U.S. crypto derivatives market, expanding its product portfolio and catering to a broader range of trader preferences. The move would also solidify Coinbase's position as a leading crypto financial services platform in the country.

This article was originally published on Metaverse Post and has been modified and republished with permission.

The post Deribit’s crypto options open interest hits record highs at over $42.5B appeared first on Metaverse Post.

Don't be surprised if buying activity picks up across the spectrum of products tied to BTC in the coming days as traders close out some of their positions and open new ones, presenting a bullish case for bitcoin.

As bitcoin's (BTC) price hit new all-time highs of over $111,000 during Thursday's Asian trading hours, it spurred record activity in the Deribit-listed options market