Crypto-derivatives trading hits a new high in the new year, the market may rise due to credit

The digital currency, which is about to halve in 2020, will make a collective breakthrough this week, driving the market across the board. According to data compiled by Skew, on Tuesday, cryptocurrency derivatives trading reached a new high for the new year, while Bitcoin and Ethereum rose 9% and 16% respectively on the day.

The daily trading volume of bitcoin futures contracts is about $ 25 billion, making January 14 the busiest trading day since October 26 last year. At the same time, open interest in bitcoin futures increased by 16% to $ 3.5 billion, with cryptocurrency exchanges OKEx, Bitfinex and Huobi holding the highest positions.

skew_btc_futures__aggregated_daily_volumes-1 Source: Skew

The BTC options market has also experienced its best day since June 26 last year, with Deribit taking the largest share of total trading volume, while LedgerX and CME are the leaders in the US market.

skew_btc_options_volumes1 Source: Skew

Ethereum's derivatives transactions have seen a more significant increase, with futures trading volume reaching $ 3 billion, three times the previous day. On the other hand, the trading volume of ETH options surged to five times the previous day.

skew_deribit_eth_options_volumes Source: Skew


Source: Skew

Several market observers said that increased investor interest in cryptocurrency derivatives could be the combined effect of CME's launch of BTC options trading on Monday and the market becoming more mature.

Skew CEO Emmanuel Goh stated:

"CME's launch of BTC options trading on Monday has made a good start, which has aroused interest from many traditional market investors in the crypto market."

Deribit Chief Operating Officer Marius Jansen said:

"For me, this marks a more mature market. As more and more investors enter the market, price increases are inevitable and we continue to see new participants interested in Bitcoin. Eventually, we also This can be seen in the price movement. "

As US compliance platforms such as CME and Bakkt and offshore exchanges such as BitMEX, Deribit and OKEx are competing for market share, 2020 will be a year of fierce competition in the crypto derivatives market.

According to Emmanuel Goh:

"At present, the US market and the offshore market are coexisting. I think the options market may be one of the several derivative markets dominated by compliant products … The options market in the offline market is not as large as the futures market. Not as mature as the futures market. "

There is a concept in Ling's 2020 New Year's Eve speech, γ201. It represents users positively affecting potential users, so that they become interested people, and let more people know about cryptocurrencies and blockchain. The γ201 ratio determines the true value of the emerging technology market. In the current round of rise, the continuous development and maturity of the derivatives market and the introduction of CME Group's BTC options are likely to have played a huge role. As Marius Jansen said, crypto derivatives have led more and more traditional market investors to focus on crypto derivatives and participate in the crypto market. It can be said that crypto derivatives are also carrying out their own γ201 and even γ202 (directly converting potential users into users). It is also because of γ201 and γ202 that more people's participation naturally drives the market to rise. Maybe many people just come from the transaction, but it is undeniable that there will always be people who recognize Bitcoin, recognize the blockchain, and even become the backbone of the industry's future.