There are just about 7 days left for 100,000 Bitcoin open interest on option contract to expire. As the expiry date draws closer, traders and analysts continue to grow anxiety around the price of Bitcoin considering the fact that the cryptocurrency is yet to stay above the $10,000 mark despite the much-praised Halving.
However, experts have drawn other concern around the Bitcoin open interest that is about to expire. While the open interest on Bitcoin option contract has been witnessing significant surge since January and more importantly after May 11 (Bitcoin halving), experts are anticipating about the possible of the open interest surpassing $2 billion in volume.
This was the question raised by analytical and tracking platform Skew. Skew asked if it is possible for the options open interest to reach $2 billion valuation before its expiry next week.
One month after rising to $1 billion valuation, the Bitcoin option open interest surged by $500 million on June 10. Bitcoin option open interest started the year below $250 million. By mid-January, the open interest had doubled and on February 20, another $250 million had been added
It took another 3 months before the open interest surged by another $250 million, reaching $1 billion in early May. 1 months after, $500 million addition had been added pushing the value to $1.5 billion in early June.
The growth indicates more interest in Bitcoin.
Data from Skew shows that the open interest has surpassed the $1.5 billion, and it is in between $1.6 billion and $1.7 billion mark – an increase of about 100% in the last two months.
With the steady growth rate displayed by the Bitcoin option open interest in the last 6 months, there is high possibility it continues growing. However, it is unknown if it will rise to $2 billion before the expiry which will take place on June 26, but a rise beyond that level will also be great for the leading cryptocurrency.
Ether Options Spikes by 500% in Just 2 months
Ethereum, the second largest cryptocurrency by market cap, also has its option on the rise. As revealed by Skew, the Ether option has risen by about 500% in the last 2 months.
Ether option spiked from around $40 million on April 20 to around $200 million today.
Although one cannot affirm that the increase in the option is bullish for both cryptocurrencies, but all things being equal, it should be a bullish sign for the two digital currencies as it indicates increase in Bitcoin and Ethereum trading, hence upsurge in liquidity.
