Bitcoin options hit highest level since 2021 amid banking crisis.
Mass bitcoin options reached its highest level since October 2021 amid a banking crisis. Specifically, bitcoin options trading volume recorded $7.94 billion this week, as the traditional financial markets are seeing significant volatility.
Anand Gomes, co-founder of Paradigm, said the crypto market is “valuing in more easing monetary terms,” because “the Fed can’t raise rates anymore.”
“The Fed raised interest rates and it broke the banking system,” Gomes said in a Telegram interview, referring to the collapse of Silvergate, Silicon Valley Bank and the troubles Credit Suisse is facing. .
According to Laura Vidiella, vice president of LedgerPrime, the reason bitcoin options hit a high has more to do with volatility.
“High volatility and high volume are often highly correlated, especially for liquid assets, which is why Paradigm had record volume this week, making over $1 billion. in just one day,” said Vidiella.
Another reason for the recovery, Vidiella said, is that investors are buying bitcoin as a way to get their money out of the banking system.
“Buying bitcoin is a strong response to how people hedge against fiat money,” she added.
Vidiella suggested that this reaction could spur some cooperation between cryptocurrencies and regulators in the future.
See also: Bitcoin, cryptocurrency is not isolated from the traditional banking system
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