Bitcoin's Weekly Options Trading Volume Rises to Highest Since FTX's Meltdown

The increase has been mainly driven by greater demand for call options, or bullish bets.

AccessTimeIconJan 24, 2023 at 12:15 p.m. UTC
Updated Jan 24, 2023 at 5:09 p.m. UTC
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Omkar Godbole was a senior reporter on CoinDesk's Markets team.

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The crypto options market is recovering from the hangover of crypto exchange FTX's collapse that left several market makers and trading firms reeling.

  • The total volume of bitcoin options on Deribit rose to $4.25 billion last week, the highest since Sam Bankman Fried's FTX exchange, formerly the third largest in the world, went bust in the second week of November.
  • That's a 375% rise from the low of $895 million registered in the final week of December, according to data source provider Amberdata. Deribit is the world's largest crypto options exchange, accounting for nearly 90% of the global trading volume and open interest.
  • The impressive recovery in volume has mainly been driven by an uptick in demand for call options or bullish bets offering protection against price rallies.
  • "The share of calls relative to put volume is currently at more than 66%, its highest level in over a year," analysts at Kaiko Research said in a note to clients on Monday. "This is yet another indicator that sentiment has improved in January."
  • The dollar value locked in the number of open options contracts, also known as open interest, has increased to $5.92 billion, the highest since Oct. 27. Bitcoin's (BTC) price has rallied by nearly 40% this month.
  • An uptick in open interest alongside a price rally suggests an influx of new money on the bullish side and is said to confirm the uptrend.
  • Options are derivative contracts that offer the purchaser the right but not the obligation to buy or sell the underlying asset at a predetermined price on or before a specific date. The call option gives the right to buy, while put options offer the right to sell.
  • Options are widely used by both institutions and individual investors and often provide an accurate picture of sentiment in the broader market.

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Omkar Godbole was a senior reporter on CoinDesk's Markets team.


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Omkar Godbole was a senior reporter on CoinDesk's Markets team.