“Bull market” effect? ETH contract holdings soared, BTC options doubled month-on-month turnover in January | Crypto Derivatives Weekly

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The value of Ethereum holdings increased significantly, and futures and options holdings reached new highs. The trading volume of Bitcoin options doubled month-on-month in January, setting a record high.

Written by: Karen

Weekly market dynamics

  • BitMEX will open the DOGEUSDT dual currency perpetual contract on February 5.
  • Deribit launched an Ethereum options product with an exercise price of US$25,000.

Futures market

Overview of extreme market liquidation

Yesterday, as Ethereum once approached US$1,700, a total of more than US$200 million was liquidated that day. On Monday, XRP soared to US$0.75 and then quickly fell back to US$0.4. On that day, XRP liquidated a total of US$419 million.

Futures liquidation statistics on BitMEX, Binance, Bybit, Huobi, MXC, OKEx, source: Coin

Trading volume and open positions

The statistical scope of Bitcoin futures includes BitMEX, Binance, Bitfinex, Bakkt, Bybit, CME, Deribit, FTX, Huobi and OKEx. The statistical scope of Ethereum futures includes BitMEX, Binance, Bitfinex, Bybit, Deribit, FTX, Huobi and OKEx.

In the past week, the trading volume of Bitcoin futures rebounded slightly, increasing by more than 7% from the previous month, and the trading volume reached 367.6 billion US dollars in one week. However, it is worth noting that CME has dropped by more than 30% month-on-month, and its weekly trading volume has fallen to US$9.1 billion.

Derivatives Weekly |Bitcoin futures contract trading volume, source: Skew

Correspondingly, the value of futures holdings has also rebounded, increasing by 7% from a week ago, reaching 11.82 billion US dollars as of yesterday. Although it is not much different from the historical record in mid-January (nearly 13 billion US dollars), it is slightly weak.

Derivatives Weekly |Open positions in Bitcoin futures contracts, source: Skew

As the price of Ethereum continued to hit a record high this week, once approaching US$1,700, the value of holdings showed an explosive growth and hit a new high, an increase of over 80% compared to two weeks ago. As of February 4, it was US$5.575 billion. However, the weekly trading volume dropped slightly by nearly 5% to US$157 billion.

Derivatives Weekly |Ethereum futures contract daily trading volume, source: Skew
Derivatives Weekly |Open positions in Ethereum futures contracts, source: Skew

Funding rate

Starting this month, Bitcoin funding rates have generally moved up slightly, and the weekly average funding rates of Binance and Bybit are both above 0.05%.
Derivatives Weekly |Open positions in Bitcoin futures contracts, source: Skew

Option market

Trading volume and open positions

The scope of Bitcoin options statistics includes Bakkt, Bit.com, CME, Deribit, Huobi, LedgerX and OKEx. The scope of Ethereum options statistics is Bit.com, Deribit, Huobi and OKEx.

From the perspective of single-month trading volume, in January, the trading volume of Bitcoin options doubled month-on-month and hit a new high . After a week’s decline of 38% last week, the volume of transactions in the past week rebounded by nearly 30%, reaching $4.845 billion. Among them, CME’s trading volume has fluctuated drastically recently. It fell by more than 80% in the two weeks after it rose by more than 200% in the week of mid-January. The trading volume in the past week rose by 185% to 85 million US dollars. After falling 35% sharply on Friday, Bitcoin option holdings rebounded by nearly 19% in the past week, reaching nearly $7.4 billion as of February 4.

Derivatives Weekly |Bitcoin options contract trading volume, source: Skew

Ethereum’s weekly trading volume also rebounded by nearly 28%, reaching US$1.16 billion, and the open position was close to US$2.4 billion. It has completely recovered the ground lost last Friday and hit a new high .

Derivatives Weekly |Ethereum option contract trading volume, source: Skew

Derivatives Weekly |Open positions in Ethereum options contracts, source: Skew

Ratio of open interest PCR

Put/Call Ratio (Put/Call Ratio, PCR) is an indicator used to measure the ratio of bearish calls. If the PCR value is greater than 1, it means that the short is greater than the long; if it is less than 1, the short is less than the long.

In the past month, the ratio of Bitcoin holdings PCR has briefly returned to below 0.7 and now returns to around 0.8. Although the bulls still dominate the situation, their advantages are gradually shrinking.

Derivatives Weekly |Ratio of Bitcoin options open interest and trading volume PCR

In terms of Ethereum, as shown in the figure below, the ratio of open interest PCR showed a V-shaped reversal in December last year and gradually decreased in the past month. This means that investors are optimistic about Ethereum in the short term.

Derivatives Weekly |The ratio of Ethereum options open interest and trading volume PCR

Volatility

As emphasized in previous weekly reports, the one-month realized volatility of Bitcoin and Ethereum continues to be at a high level. As of February 4th, they were 104% and 150%, respectively. However, it is worth noting that the implied volatility is somewhat different. Fall back .

Derivatives Weekly |From left to right are the realized volatility of Bitcoin one month and the implied volatility of Bitcoin one month ATM
Derivatives Weekly |From left to right are the one-month realized volatility of Ethereum and the one-month ATM implied volatility of Bitcoin

Option expiration

Today, 28,800 Bitcoin option contracts will expire, with a nominal value of more than 1.071 billion U.S. dollars. 40,300 and 62,000 contracts will expire on February 26 and March 26, respectively.

Derivatives Weekly |Bitcoin option expiration, source: Skew

In Ethereum, 122,200 contracts will expire today, with a nominal value of nearly 200 million U.S. dollars. 270,600 and 435,800 contracts will expire on February 26 and March 26, respectively.

Derivatives Weekly |Ethereum option expiration status, source: Skew

Disclaimer: As a blockchain information platform, the articles published on this site only represent the author’s personal views and have nothing to do with ChainNews’ position. The information, opinions, etc. in the article are for reference only, and are not intended as or regarded as actual investment advice.

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