Bitcoin hasn’t been doing well as of late when it comes to price, but in terms of options trading, things are rising higher than anyone had anticipated.Bitcoin Options Are Getting a Lot of AttentionIt is being reported that trading volumes amongst bitcoin options have broken new records. The total trading volume amongst major platforms – i.e. Bakkt, CME Group, etc. – is just shy of 0 million, thereby breaking the previous all-time high of 1 million set last February by almost million.Bitcoin, itself, has seen things travel south, meaning its price and trading has gone down since fear of the coronavirus expanded into global panic. That panic is likely to increase even further given that the World Health Organization (WHO) is now declaring the problem a “pandemic.”Bitcoin’s “safe
Topics:
Nick Marinoff considers the following as important: Bitcoin, Bitcoin News, bitcoin options, News, Stocks
This could be interesting, too:
Temitope Olatunji writes X Empire Unveils ‘Chill Phase’ Update: Community to Benefit from Expanded Tokenomics
Bhushan Akolkar writes Cardano Investors Continue to Be Hopeful despite 11% ADA Price Drop
Bena Ilyas writes Stablecoin Transactions Constitute 43% of Sub-Saharan Africa’s Volume
Chimamanda U. Martha writes Crypto Exchange ADEX Teams Up with Unizen to Enhance Trading Experience for Users
Bitcoin hasn’t been doing well as of late when it comes to price, but in terms of options trading, things are rising higher than anyone had anticipated.
Bitcoin Options Are Getting a Lot of Attention
It is being reported that trading volumes amongst bitcoin options have broken new records. The total trading volume amongst major platforms – i.e. Bakkt, CME Group, etc. – is just shy of $200 million, thereby breaking the previous all-time high of $171 million set last February by almost $30 million.
Bitcoin, itself, has seen things travel south, meaning its price and trading has gone down since fear of the coronavirus expanded into global panic. That panic is likely to increase even further given that the World Health Organization (WHO) is now declaring the problem a “pandemic.”
Bitcoin’s “safe haven” status has been largely questioned by analysts and traders everywhere considering the asset has fallen into the mid-$7,000 range and has lost most of the gains its garnered since the beginning of the year. The currency is presently trading closer to where it ended 2019.
But while the asset is questionable as of late, the products it has produced over the past few months are another story. Companies like CME Group in Chicago initially began offering options based on bitcoin futures back in early January of this year to vastly positive reception, and it appears that momentum is keeping up – especially in times of trouble, like we’re witnessing today.
CEO and co-founder of Skew Emmanuel Goh says that this is not unusual. He explains:
Derivatives trading activity tends to increase when a large spot move occurs, which was triggered yesterday by an extraordinary sell-off in risk assets globally.
When one considers how poorly stocks, bonds, cryptocurrencies and even oil have been doing over the past few days, it’s no surprise that investors will look elsewhere to ensure their money and portfolios stay strong, and digital options appear to be growing in popularity.
Investors Change Focus
The CEO of Titus Investment Advisors Justin Gillespie says that the recent sell-off of traditional assets and standard cryptocurrencies such as bitcoin have given options the chance to shine. He mentions:
The sell-off has provided an ample amount of opportunities for both shorter term traders and longer-term investors alike to acquire bitcoin and other assets at a significant discount to where prices stood just two weeks ago. Options are one effective way of taking advantage of these opportunities.
Despite the promise of potential recovery yesterday, it looks like cryptocurrencies and the stock market have taken another turn for the worse. After gaining 500 points roughly 24 hours ago, the Dow has lost another 1,300, while assets like bitcoin – which was trading above $7,900 just yesterday – have lost anywhere between two, and in some cases, eight or nine percent since the previous morning.