BTC Options Open Interest Surges, Traders Look to an Unfilled Bitcoin Futures Gap at $18K

Bitcoin prices have been volatile during the last few weeks, but have managed to climb higher in value at the same time. This week bitcoin derivatives markets, specifically futures and options, show that crypto asset traders should expect more swings going forward. Some traders believe that the digital currency’s price could fill two unfilled gaps on CME Group’s Bitcoin Futures chart with an upward trajectory toward $18,000.

During the last few days, bitcoin (BTC) spiked over the $16k handle, as numerous cryptocurrency markets have seen some significant gains this week. On Sunday morning, November 14, 2020, BTC’s price slid under the $16k zone to a low of $15,750 during the early morning trading sessions (EST).

The asset has regained some of the lost value and continues to fight the psychological $16k region at the time of publication.

Meanwhile, bitcoin derivatives markets have been seeing some intense action, as both futures and options markets show signs of things to come. On November 6, 2020, Skew.com tweeted about how bitcoin options open interest has been “breaking out big.”

Essentially, open interest is the measurement of contracts that have been initiated within futures markets held on exchanges like Deribit and CME Group. From Skew’s chart, it shows that BTC options open interest is at an all-time high (ATH), with Deribit capturing the lion share of open interest.

CME Group, Okex, and Ledgerx follow Deribit’s lead, and CME’s open interest has been growing massively. In crypto derivatives markets that tend to bitcoin futures and perpetuals, open interest has also reached an ATH this month.

With Bitmex’s open interest lower since the recent U.S. investigation, most of the derivatives exchange interest is distributed almost evenly except for Bakkt, which is the third-lowest…

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