Both the total open interest for BTC futures and options broke new records today as Bitcoin touched its yearly high of $15,968 on Bitstamp.
Bitcoin Traders Break Volume Records
Bitcoin futures traders logged a daily volume of $41 billion, $2 billion less than the token’s all-time high. However, the total open interest (OI) for BTC futures surpassed $5.7 billion, a new record.
The options contracts volume data for Bitcoin is equally bullish. The total volume for BTC options OI crossed $3.5 billion, a new high for the metric. Moreover, the Deribit exchange saw trading volumes accounting for 84% of the total OI.
Deribit is the largest options trading platform, with 80% of the total market volume.
At these price levels, we see a lot of new records! 🔥
🏆56k BTC Option traded, with a notional value of ~$870M in the last 24hrs, 84% of the overall option market
🏆Total BTC Option OI $2,8billion, 79% of the total option market. 🚀#Bitcoin Keep doing what you are doing!
— Deribit (@DeribitExchange) November 6, 2020
Nevertheless, the position data of derivatives traders is still not yet euphoric.
For example, the last time futures OI was at $5.7 billion, the funding rate for perpetual swaps was 0.055%. Currently, this rate is at0.006%.
Options traders, on the other hand, recorded an increase in negative interest. The put-to-call ratio for BTC options rose from 0.56 to 0.69, marking an increase of put positions.
Still, if past tops in the put-to-call ratio of options or the funding rate for futures is taken as reference, there is much more room for growth in Bitcoin price from a derivatives perspective.
This last 48hrs has been the most organic face-ripping pump from BTC I’ve seen in years. There was some seriously solid buying for long term HODL during all of it.
— Willy Woo (@woonomic) November 6, 2020
In the last two days, over $75 million have been liquidated in shorts on BitMEX alone.
This is considerably low from the levels in the past when liquidations shot up to hundreds of millions.
It points out that spot buyers are driving the current bull run and have taken out short derivatives players trying to guess the top.