Bitcoin BTC -0.54% options on the Chicago Mercantile Exchange (CME) have reached a record level of open interest, according to The Block's data dashboard. Over the past 24 hours, open interest in Bitcoin CME futures options has reached nearly $2 billion in open contracts. The same results were observed by Velo Data, which shows that open interest in options on Bitcoin CME futures reached a record $2.1 billion.
Record Open Interest on CME Bitcoin Options
Open interest in Bitcoin options on the Chicago Mercantile Exchange (CME) has just reached an all-time high, according to information provided by The Block's data dashboard. CME Bitcoin futures have recorded nearly $2 billion in open interest over the past 24 hours, a statistic also confirmed by Velo Data data, which shows a peak of $2.1 billion.
This increase in open interest indicates a highly liquid market with many participants. Open interest refers to the total number of outstanding options contracts that have not been exercised. An increase in open interest suggests increased activity by sophisticated traders, with the creation of new contracts added to existing ones.
Market configuration and outlook
Coinglass data reveals that open interest in options is more call-driven than wager-driven for the end-of-December expiration date, with 65% calls versus 35% wagers. When the volume of calls exceeds that of bets, this is interpreted as a bullish indicator.
Bitcoin futures traders are moving towards rate cuts in 2024, betting on rate cuts as early as March, according to Bitfinex analysts quoted by The Block. These forecasts are in line with those of the CME FedWatch tool, which estimates a 66.7% probability of a 25 basis point rate cut in March 2024 by the US central bank.
Trading volume in CME Bitcoin futures has reached $41 billion so far in December, indicating intense trading activity. Options on CME Bitcoin futures expire on the same day as the underlying futures contract, the last Friday of the month.
