Options on Deribit - a sign of market development

Bitcoin has long been a subject for conversations in the cryptocurrency space since its price fluctuations began to affect the industry as a whole. With the advent of new institutional investors and participants in the field of digital assets, some of the indicators of cryptocurrency have changed for the better, which indicates that the market is developing.

The latest Skew data suggests that over the past couple of weeks, long-term options have begun to account for a large share in the amount of Bitcoin options Deribit. This happened after the short-term options no longer dominate the long-term options.

The transition of BTC to a long game was already noticeable last month, when 34,000 outstanding options on Deribit expired. The last week of July reflects the revival of long options, while before that 60% of them were short-term.

The last two days of July created a contrasting picture, since the longer options were 65% and 70% of all BTC options. The beginning of the new month was characterized by an increase in the dominance of long ones, since options with a short duration covered only 25% of all transactions.

Against this background, many industry users are pondering why interest in short-term options is declining. In short, short-term options are considered “price sequence options”, respectively, if the user hedges a high expected volume and even if the actual volume exceeds the stated amount, the user may lose money. Growing competition from long-term options is seen as a sign of market acceptance and maturity.

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