Bitcoin’s volatile behavior was back in the picture after the world’s largest cryptocurrency went through a tumultuous week. After breaching the $13,000 mark on some exchanges, Bitcoin witnessed a massive shave in its value, causing it to trade below the $11,000 mark.
It was not just the price that was affected by the bear run, but other parameters as well, including Bitcoin options. A recent analysis by Skew showed that approximately 50 percent of outstanding Bitcoin options on Deribit had expired. Deribit, which is a direct competitor of Bitmex, held approximately 34,000 options on its platform.
The graph showed that BTC options open interest fell from $700 million to almost $350 million in a span of an hour. The minimum amount was $341 million, while the maximum peaked at $726 million. The options expiry occurred at a time when Bitcoin was trading at $11,301 with a total market cap of $208.12 billion. The cryptocurrency’s 24-hour market volume was at $38.537 billion, and this figure had risen from what it was in the previous week.
Bitcoin’s open interest had shown a spike recently when on March 7th, Bitcoin’s open interest reached the 76,000 mark. Alex Kruger, a popular financial market analyst had stated,
“Bitcoin is the second most heavily traded asset at the CME when measured by the volume / open interest ratio. In other words, bitcoin is an asset very actively traded throughout the day.”
The last time Deribit was in the news, Bitcoin had pumped slightly around the previous psychological support of $6650. The resulting pump had caused a lot of BTC holders to switch to Deribit from Bitmex, owing to some technical issues on the latter. One customer, Ernest B Shackleton, had said,
“Can confirm – balance gone, active position not showing and unable to withdraw. but yes, sure thing @BitMEXdotcom is ready to support institutional investors.”
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