Complete Gate Post tasks to upgrade your rank

Credit Ranking

[//]:content-type-MARKDOWN-DONOT-DELETE
![](https://gimg2.gateimg.com/image/article/1690791857hotspot.jpeg)
## [TL; DR]
The value of ETH and <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> options on Deribit reached $23.6 billion on 8 December 2023.

Gate.io exchange offers various crypto derivative products like perpetual futures, delivery futures and options. 

Many traders use crypto options to hedge against trading risks. 

## Introduction 
The invention of digital assets like cryptocurrency has brought more investment choices on the market. Apart from investing directly into cryptocurrencies institutions and individuals can trade crypto derivatives like options, perpetuals and futures. 

Currently, as the prices of cryptocurrencies rise most of their derivatives have also gained much. This analysis looks at the developments in the crypto derivative sector due to the current bullish crypto market. We will also assess how [crypto derivatives like options contribute to the cryptocurrency market](https://www.gate.io/learn/articles/crypto-derivatives-explained/480 "crypto derivatives like options contribute to the cryptocurrency market"). 

## Bitcoin and Ether Options Record High Values 
On 8 December 2023 Bitcoin and Ether option values on Deribit, a cryptocurrency futures and options exchange, reached a record level of $23.6 billion. On that day institutions dominated the market, although the number of retail traders has been increasing during the year. 

Bitcoin options, also called bitcoin notional open interest, accounted for 67% of the accumulative figure. In particular bitcoin options had a value of $16 billion while ETH had $7.6 billion. Since perpetuals and futures OI had a total value of $2.2 billion on that day, Deribit reached a $25.8 billion milestone. 

By the end of the day, most open interest for both ETH and bitcoin were call options. The bitcoin calls were at $50,000, $40,000, and $45,000 strikes. On the other hand, most of ETH’s calls were at $2,300, $2,400, $2,500 and $3,000. The fact that the market had more calls than puts indicates an expectation of continued crypto rallies. 

On 8 December, Deribit posted a message about its achievement on X. [It wrote](https://twitter.com/DeribitExchange/status/1733030536128708692 "It wrote"), “Record-breaking moment for Deribit as BTC and ETH options' value hits an all-time high of $23B. Increased interest in three-dimensional options trading signals growing participation of sophisticated traders in the crypto market.”

During that week bitcoin continued rallying as it attained a new price level for 2023, $44,000. The main push factors for the bullish crypto market are the expectation of the SEC approval of bitcoin ETFs and the declining U.S. Treasury yields. 

Read also: [Crypto Prediction & Forecast for 2025, 2030](https://www.gate.io/price-prediction "Crypto Prediction & Forecast for 2025, 2030")

## Other Factors Contributing to the Bitcoin and ETH Option Value Surge
The value of crypto options depends on the downside risk of the underlying cryptocurrencies like ETH and BTC.  Downside risk is the possibility of the value of the underlying asset falling in the near future. Crypto investors that purchase put options, for example, simply transferred the downside risk to the seller. 

Therefore, if there is a high chance of downside risks the hedge becomes more expensive. The time factor for the option and the volatility of the underlying asset determine the value of the derivative. Therefore, the current crypto market volatility is influencing the values of the options. 

Read also: [Bitcoin Spot ETF Vs. Bitcoin Futures ETF](https://www.gate.io/learn/articles/bitcoin-spot-etf-vs-bitcoin-futures-etf/973 "Bitcoin Spot ETF Vs. Bitcoin Futures ETF")

Secondly, we are in a period where the market expects  prices of major cryptocurrencies like bitcoin and ETH to keep on rising. Specifically, the market expects the value of bitcoin to rise as we approach [the 2024 halving event](https://www.gate.io/blog_detail/1800 "the 2024 halving event"). The value of ETH is also likely to increase since, in most cases, it correlates with that of bitcoin. Therefore, the current positive crypto market sentiment is influencing the price of crypto options. 

It is important, also, to note that a bitcoin option [or ETH option’s expiry period influences its value](https://www.gate.io/blog_detail/2530/bullish-bets-soar-as-ether-options-trading-volume-overtakes-bitcoin-fueled-by-shanghai-upgrade-demand "or ETH option’s expiry period influences its value"). Crypto options tend to be cheaper when their expiry periods are still further away. This means that as a bitcoin option expiry period draws closer its value rises.

Read also: [BTC or ETH: Which is The Better Long-term Investment?](https://www.gate.io/blog_detail/751/btc-or-eth-which-is-the-better-long-term-investment "BTC or ETH: Which is The Better Long-term Investment?")

## The Importance of Options in the Crypto Market
Crypto options are an important aspect of the cryptocurrency market as investors use them as hedges against falling prices. 

The crypto investors purchase the options which are inversely correlated to their crypto trading positions. For example, an investor that opens a long bitcoin position will open a put bitcoin option to hedge against BTC price fall. 

Read also: [How is Bitcoin a Hedge against Inflation?](https://www.gate.io/blog_detail/1171/how-is-bitcoin-a-hedge-against-inflation "How is Bitcoin a Hedge against Inflation?")

## Gate.io Trading Products 
We have discussed the importance of investing in crypto derivatives like options and perpetuals.
Crypto investors can purchase some of these products on cryptocurrency exchanges.

In fact, Gate.io has many investment products which include perpetual futures, delivery futures and options. Let’s briefly discuss some of these crypto derivatives. 

Gate.io Perpetual Futures: [These products are similar to traditional futures](https://www.gate.io/futures/USDT/BTC_USDT "These products are similar to traditional futures") except that they have no settlement or expiration. The traders can bet on price movement of an underlying asset like bitcoin or ETH.  

Delivery Futures: These are [derivatives of digital assets](https://www.gate.io/futures_center "derivatives of digital assets") which the traders settle using USDT or BTC. Note that these derivatives have expiry dates. At the expiry of the contract both the seller and buyer are obliged to honor the contract. 

## Conclusion 
The value of Bitcoin and ETH options on Deribit, the cryptocurrency futures and options exchange, reached $23.6 billion. A positive sentiment in the cryptocurrency market has influenced the current uptick in the options market. Gate.io is another cryptocurrency exchange that offers crypto derivative products such as perpetual futures, delivery futures and options. 



<div class="blog-details-info">
<div>Author:**Mashell C.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>


简体中文

English

Tiếng Việt

Español

Русский язык

Français

ภาษาไทย

日本語

Indonesia

Deutsch

عربي

Português (Portugal]

Português (Brasil]

繁體中文

Українська

The value of crypto option trading on Deribit exchange reached $23.6 billion on 8 December as a result of the current bullish cryptocurrency market.

福利中心

铭文导航-铭文Launchpad

铭文-铭文导航

铭文-web3startup

新币挖矿

小红花-Exchange-Startup

交易-创新交易

交易-盘前交易

打新

小红花-Learn & Explore-博客

小红花-Learn & Explore-快讯

币圈-币圈-未来事件

小红花-Learn & Explore-聊天室

小红花-Learn & Explore-直播

小红花-Learn & Explore-动态

年度账单

币圈

Gate OTC

芝麻金融-更多-财富管理

机构-APIs

机构-大宗交易服务

机构-经纪商项目

全球做市商计划

机构-托管和资产管理

机构借贷

机构-做市商项目

小红花-Promotions-机构和VIP服务

量化基金

机构-基础架构

机构-交易

机构-金融

结构化产品

机构-主页

衍生品-统一账户

芝麻金融-更多-抵押借币

vip服务

机构

策略跟单

现货跟单

合约跟单

跟单

量化策略-探索

量化策略-进阶

量化策略-基础

机器人广场

创建机器人

探索机器人

杠杆网格

无限网格

期现套利

组合指标策略

智能调仓

现货马丁格尔

合约网格

现货网格

交易机器人

芝麻金融-更多-ETH2.0挖矿

芝麻金融-更多-法币理财

USDE挖矿

链上赚币

芝麻金融-理财-双币宝

芝麻金融-理财-定期理财(屯币)

芝麻金融-理财-结构性理财

芝麻金融-理财-理财宝

芝麻金融-理财-余币宝

GT挖矿

芝麻金融-更多

芝麻金融-理财

赚币

模拟交易

衍生品-实盘跟单

衍生品-期权

衍生品-交割合约

衍生品-永续合约

衍生品-合约中心

合约入门

合约活动

衍生品

交易-量化策略

交易-杠杆ETF

交易-杠杆交易

交易-闪兑

交易-现货交易

交易

行情

买币-gateCard

卖币

买币-快捷交易

买币

买币-paywith

法币定投

小红花-推广

新手指南

活动中心

小红花-Learn & Explore-学院

任务广场

小红花-Exchange-最新公告

小红花-Exchange-帮助中心

小红花-Exchange-交易所

gate商店

小红花-Promotions-推荐官计划

小红花-Promotions-邀请计划

小红花-promotions-代理商

cextg小程序

储备金

合作伙伴

小红花

web3

Deribit’s Record $23 Options Milestone Indicates Surge in Crypto’s Sophiscated Traders