Main navigation

Is Crypto Market Overheated? Ether Options Open Interest Hits Highest Level Since May

Thu, 08/12/2021 - 16:03
article image
Alex Dovbnya
The Ether options-trading boom is still far from reaching its peak of early May
Is Crypto Market Overheated? Ether Options Open Interest Hits Highest Level Since May
Cover image via

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Read U.TODAY on
Google News

According to data provided by Bybt, open interest in Ethereum options has reached $4 billion—its highest level since late May.

Dutch derivatives exchange Deribit accounts for almost the entire sum, with OKEx coming in a very distant second place with $184 million worth of OI.

Image by

Options—which are used both for hedging and risky speculation—saw a huge drop in open interest back in June when the whole market was coming to terms with a severe correction.

On June 26, Ether options OI dropped to just $1.62 billion, the lowest level since early January.

This happened just a little over a month after it reached its peak of $7.4 billion on May 12. This coincided with Ether logging its current all-time high of $4,356.

Ripple v. SEC: U.S. Congressman Says Resolution Could Have "Significant" Ramifications for Crypto Market

An ominous sign?

The revival of the Ether options-trading craze may be a sign that the market was getting overheated given that it came on the brink of an ongoing pullback.

Earlier today, Ether came awfully close to breaking below $3,000 on the Bitstamp exchange amid broader market weakness.

That said, a healthy call-put ratio of 1.81 signals that the options market is now bullish after a strong recovery.

article image
About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at