bitcoin Options volumes reached their highest point since October 2021, when the Bitcoin price hit over $60,000 during the banking crisis.
Bitcoin options volumes refer to the number of contracts traded that give the holder the right, but no obligation, to buy or sell Bitcoin at a specified price and date in the future.
Bitcoin Options Volumes Peak
Bitcoin options trading volume was $7.94 billion this week, as traditional financial markets saw significant volatility, according to data from The Block.
The increase in BTC options volumes may indicate a growing interest in BTC as an investment and that investors are actively trying to profit from price movements.
However, it should be noted that the relationship between BTC and the overall financial system is complex and the impact of the banking crisis on BTC’s long-term prospects is uncertain.
Anand Gomes, co-founder of institutional liquidity provider Paradigm, said the market is “pricing looser monetary conditions” because “the Fed can no longer raise rates.”
In an interview via Telegram, Gomes said, “The Fed raised interest rates and crashed the banking system,” referring to the collapse of Silvergate, Silicon Valley Bank and the problems faced by Credit Suisse.
“Loose monetary policy means cheaper capital,” said Gomes, “and cheaper capital means we invest that capital in higher-yielding assets.”
According to Laura Vidiella, vice president at LedgerPrime, the reason for the recent rise is more about volatility.
“High volatility and high trading volume are often very parallel, especially for liquid assets,” said Vidiella, which is why Paradigm hit record volumes this week, trading over $1 billion in a single day.
Vidiella said another reason for the rally was that investors were buying Bitcoin as a way to get their funds out of banks that were at high risk of failure.
Vidiella, this reaction cryptocurrency He thinks it could encourage some collaboration between regulators and regulators.
*Not investment advice.
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