Bitcoin's market run-up sends options to all-time high for open interest

Bitcoin's price has been on a tear — and that's helped bring the options market for the digital asset to new heights, according to data compiled by The Block. 

The price of bitcoin has appreciated by about 15% over the last five days, sending the price of the cryptocurrency above $13,000 for the first time since 2019.

At the same time, the aggregate open interest across bitcoin options has surged to all-time highs close to $2.5 billion. According to The Block data sources, the aggregate open interest — which represents the total number of positions outstanding — stands at $2.48 billion, with crypto exchange Deribit making up the lion's share of OI at $1.82 billion.

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Meanwhile, open interest in CME Group's bitcoin option topped $337 million. 

This development shouldn't come as a surprise to market observers given that open interest is a function of the price of bitcoin — meaning the value of each contract trading increases as the price increases. 

About Author

Frank Chaparro is the Editor At Large at The Block. Chaparro started his career at Business Insider, where he specialized in the intersection of digital assets and Wall Street, market structure, and financial technology. Soon after joining Business Insider out of Fordham University, Chaparro was interviewing top finance and tech executives, including billionaire Mark Cuban, “Flash Boys” star Brad Katsuyama, Cboe Global Markets CEO Ed Tilly, and New York Stock Exchange President Tom Farley. In 2018, he become a sought after reporter in the crypto world, interviewing luminaries such as Tyler Winklevoss, the cofounder of Gemini, Jeremy Allaire, the CEO of Circle, and Fundstrat head Tom Lee. He runs his own podcast The Scoop and writes a biweekly eponymous newsletter. He leads special projects, including The Block's flagship podcast, The Scoop. Prior to The Block, he held roles at Business Insider, NPR, and Nasdaq. For inquiries or tips, email [email protected].