Bitcoin Options Reach Highest Point Since 2021

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Last Updated on March 19, 2023 by Bitfinsider

Bitcoin option volumes have hit their highest level since October 2021, when the price of bitcoin reached a high of more than $60,000 amid a banking crisis.

According to Bitfinsider, the volume of bitcoin options trading this week was $7.94 billion, despite considerable volatility in conventional financial markets.

Because “the Fed can’t hike rates anymore,” the market is “pricing in looser monetary conditions,” according to Anand Gomes, co-founder of Paradigm, an institutional liquidity provider.

“Loose monetary policy means cheaper capital,” Gomes explained, “and cheaper capital means we can invest it in higher-yielding assets.” As a result, “macro sentiment has turned extremely bullish.”

The cause, according to Laura Vidiella, vice president at LedgerPrime, is more about volatility.

“High volatility and high trading volume are generally very correlated, particularly for liquid assets,” she explained, explaining why Paradigm had record volumes this week, transacting over $1 billion in a single day.

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