The memory of November 2020 will remain long in the minds of Bitcoin investors and the collective crypto industry. A rally ignited in mid-October finally realized its full potential in the penultimate month of the year, and many of the market’s leading crypto assets rose to new heights.
While most digital asset sectors saw high demand, the derivatives market saw record open interest in charts.
Monthly conceptual turnover was recorded at $ 14.3 billion, with a new average on daily Bitcoin options, according to Deribit’s November corporate news release. More than 25 thousand Bitcoin contracts were bought and sold every day, and unprecedented open interest levels of $ 4.8 billion were also seen.
The peaks of Bitcoin and Ethereum options
Bitcoin and Ethereum prices rose by 40% and 55% respectively, with both price movements having a major impact on BTC and ETH contracts. According to the report in question:
NOVEMBER OCTOBER 2020, “750,123 BTC OPTION CONTRACTS WERE TRADED, AN INCREASE OF 77% COMPARED TO OCTOBER 2020. THE OCTOBER NOVEMBER 2020 OPTION CONTRACT OF 3,270,065 ETH WAS TRADED, A 95% INCREASE OVER OCTOBER 2020.“
It is important to note here that December will now witness its highest maturity with 31% in total BTC Oi and 44% for ETH oi.
Did Ethereum hold the fort when BTC fell?
While these data sets are extremely attractive on paper, it is important to note that before the beginning of October, Bitcoin options had lost a lot of traction in the market. Its price remained steady above $ 10,000, but it was not moving the needle on the derivatives platform in any significant way.
On the contrary, during this period Ethereum Options was using the enormous open interest of retail investors.
August and September 2020 can be seen from the accompanying chart that the Ethereum contract volume exceeded the same level for BTC. While BTC has taken the lead again in the last few months, it is fair to say that Ethereum is holding investors. It attracted his attention and continued its presence in the market.
When BTC failed to garner interest, the ETH Options kept the collective Oi at a significant level. Therefore, it is reasonable for these traders to also track bitcoin’s performance and stay in the field because of Ethereum’s activity rather than exit the market.
Today, the Bitcoin and Ethereum options compete for a higher open interest among themselves. However, thanks to the performances of the world’s largest altcoin, BTC contracts may need to be grateful to traders who are keeping their eyes on the field.