Bitcoin options market hits a monthly high as price passes $7k

Bitcoin price saw another period of recovery starting Thursday, April 16th. The coin once again managed to get past the crucial $7k mark, and it currently sits at $7,095, with a price boost of 1.30% from yesterday.

Bitcoin options market surges following the coin’s price boost

Of course, the price increase represents a good development for Bitcoin trading itself. However, it also had a positive impact on the Bitcoin options market, which also picked up the pace yesterday.

Bitcoin options’ daily trading volume surged across numerous different exchanges. Some examples include LedgerX, CME, OKEx, Deribit, Bakkt, and others. In total, it grew to $86.4 million yesterday, which is the highest since March 16th.

The exchange with the highest options volume is Deribit, based in the Netherlands. This single exchange contributed around 85% of the total daily trading volume for Thursday. Meanwhile, CME only saw a trading volume of $832,000, which is about 1% of the total volume.

Not only that, but aggregate open interest on numerous options contracts grew as well. At its peak, it reached $642.3 million, after previously dropping to $400m in March.

Bitcoin’s new growth seemingly found acceptance above $7k, which has been its major resistance for a long time. The new breakout finally encouraged the bulls once more, after they withdrew in March. Now, some speculate that the coin might go for $8,000 mark next, especially since halving is less than a month away.

Bitcoin halving approaches

The halving is a much-anticipated event, and perhaps the largest event in the crypto industry this year. It will reduce the number of BTC that miners receive per block from 12.5 to 6.25 BTC.

This has led many to speculate how the event might reflect on the coin’s price. Some believe that the halving will spark a massive rally that will result in a new all-time high. Others, however, expect that it will not follow this path, unlike the previous two halvings.

The options market activity suggests that investors are making bets, likely to hedge against another March scenario. The demand is definitely high for put options, and it shows the rise of the put-call open interest ratio, which rose to a seven-week high. As for what will happen to the price after halving, it remains unknown. For now, at least, Bitcoin remains a better investment than the stock market, which bottomed out.