Sharp Bitcoin price move brewing as BTC volatility falls to a 16-month low
Cointelegraph
Published Oct 17, 2020 04:52PM ET
Updated Oct 17, 2020 06:40PM ET
Bitcoin (BTC) options aggregate open interest has increased to $2 billion, which is 13% below the all-time high. Although the open interest is still heavily concentrated on Deribit exchange, the Chicago Mercantile Exchange (CME) has also reached $300 million.
In simple terms, options derivatives contracts allow investors to buy protection, either from the upside (call options) or downside (put options). Even though there are some more complex strategies, the mere existence of liquid options markets is a positive indicator.
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Written By: Cointelegraph
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