Latest news with #Strijers
Yahoo
02-06-2025
- Business
- Yahoo
XRP's Indecisive May vs. Bullish Bets – A Divergence Worth Watching
XRP, used by Ripple to facilitate cross-border transactions, ended May with signs of indecision. Still, activity on the dominant crypto options exchange, Deribit, suggests that bulls aren't ready to back down yet. The payments-focused cryptocurrency formed a "doji" with a long upper shadow in May, a classic sign of indecision in the market, according to charting platform TradingView. The long upper wick suggests that bulls pushed prices higher to $2.65, but bears stepped in and rejected those levels, driving prices down to near the level seen at the start of the month. The appearance of the doji suggests the recovery rally from the early April lows near $1.60 has likely run out of steam. Doji candles appearing after uptrends often prompt technical analysts to call for bull exhaustion and a potential turn lower. Accordingly, last week, some traders purchased the $ 2.40 strike put option expiring on May 30. A put option offers insurance against price drops. The overall picture remains bullish, with options open interest concentrated in higher-strike calls in a sign of persistent positive sentiment. Open interest refers to the number of active contracts at a given time. A call option gives the purchaser an asymmetric upside exposure to the underlying asset, in this case, XRP, representing a bullish bet. "XRP open interest on Deribit is steadily increasing, with the highest concentration of strikes clustered on the upside between $2.60 and $3.0+, reflecting a notably bullish sentiment while the spot price currently trades at $2.16," Luuk Strijers, CEO of Deribit, told CoinDesk. The chart shows that the $4 call option is the most popular, with a notional open interest of $5.39 million. Calls at the $3 and $3.10 strikes have an open interest (OI) of over $5 million each. Notional open interest refers to the dollar value of the number of active contracts. "XRP option open interest is split across June and September expiries, with monthly notional volumes approximating $65–$70 million, of which over 95% is traded on Deribit," Strijers said. The bullish mood likely stems from XRP's positioning as a cross-border payments solution and mounting expectations of a spot XRP ETF listing in the U.S. Furthermore, the cryptocurrency is gaining traction as a corporate treasury asset. Ripple, which uses XRP to facilitate cross-border transactions, recently highlighted its potential to address inefficiencies in SWIFT-based cross-border payments. The B2B cross-border payments market is projected to increase to $50 trillion by 2031, up 58% from $31.6 trillion in 2024.
Yahoo
22-05-2025
- Business
- Yahoo
Bitcoin Options Open Interest Hit Record $42.5B on Deribit as Traders Eye Next Bull Target for BTC
"Don't be surprised if buying activity picks up across the spectrum of products tied to BTC," CoinDesk said in Tuesday's edition of the Crypto Daybook Americas, presenting a bullish case for bitcoin. As bitcoin's (BTC) price jumped to new lifetime highs above $111K during Thursday's Asian trading hours it spurred record activity in the Deribit-listed options market. The notional open interest (OI), or the dollar value of the number of active or open options contracts, rose to a record $42.5 billion, Deribit's CEO, Luuk Strijers, told CoinDesk. Options are derivative contracts that give the right but not the obligation to buy or sell the underlying asset at a predetermined price at a later date. A call provides the right to buy, representing an implicit bullish bet on the market, while a put option offers insurance against price slides. BTC's move to record highs saw traders chase upside through higher strike call options. "Most traded strikes in the past 24h: $120K and $130K upside calls for May and June expiry. Highest OI now sits at the $110K, $120K, and $300K June 27 strikes — showing bullish conviction," Strijers said. Deribit is the world's largest crypto options exchange, accounting for nearly 80% of the global crypto options activity. The exchange also offers trading in perpetuals and spot markets. The overall open interest across crypto options and perpetual futures segments has also hit a record high of over $45 billion. Publicly traded crypto exchange Coinbase has planned to acquire derivatives exchange Deribit in a $2.9 billion in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-05-2025
- Business
- Yahoo
Major news sends Coinbase stock rallying
Coinbase (Nasdaq: COIN) has agreed to acquire Deribit for roughly $2.9 billion, The Wall Street Journal reported on May 8. The deal would mark the largest acquisition in the history of the crypto industry. Valued at $2.9 billion, the transaction consists of $700 million in cash and 11 million shares of Coinbase Class A common stock. While Coinbase is the largest crypto exchange in the U.S., Dubai-headquartered Deribit is the world's leading crypto options and futures exchange. In fact, Deribit processed $1.2 trillion in trading volume in 2024. 'We're excited to join forces with Coinbase to power a new era in global crypto derivatives,' Deribit CEO Luuk Strijers said. 'As the leading crypto options platform, we've built a strong, profitable business, and this acquisition will accelerate the foundation we laid while providing traders with even more opportunities across spot, futures, perpetuals, and options – all under one trusted brand. Together with Coinbase, we're set to shape the future of the global crypto derivatives market," Strijers added. Coinbase had been competing with another U.S.-based exchange Kraken for months to acquire Deribit. As reported earlier, Kraken announced the acquisition of NinjaTrader, the futures trading exchange, for $1.5 billion. Notably, the federal regulator dropped the securities violations case against Coinbase on Feb. 27. The company's stock which fell as much as 18% following President Donald Trump's "Liberation Day" announcement of tariff hikes has been able to recover. COIN was trading at $207.25 at the time of writing, up 5% a day. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-03-2025
- Business
- Yahoo
Bitcoin's $12B Quarterly Options Expiry Unlikely to Cause Major Market Reaction, Deribit Says
Bitcoin (BTC) options worth billions of dollars will expire on Deribit on Friday. The impending settlement, though big, may not yield significant market volatility, the exchange told CoinDesk. More than 139,000 BTC option contracts, worth $12.13 billion, representing nearly 45% of the total active BTC contracts across all expiries, are due for settlement this Friday, according to data source Deribit metrics. More than 65% of the total open interest is concentrated in call options that provide buyers with an asymmetric bullish exposure, while the rest is in put options offering downside protection. Quarterly expiries of such massive magnitudes are known to breed market volatility, but that may not be the case this time, going by the continued decline in the bitcoin 30-day implied volatility index (DVOL). The index has dropped from an annualized 62% to 48% in the weeks leading up to the expiry, suggesting subdued volatility expectations. Similar conclusions can be drawn from the annualized perpetual futures basis of around 5% on the exchange, signalling a calmer funding environment. "Despite the size of the expiry, the overall setup—low DVOL, moderate basis, and balanced options positioning—points to a relatively subdued expiry unless external catalysts emerge," Luuk Strijers, CEO of Deribit, told CoinDesk. Options skew, which measures the difference between implied volatility (pricing) for calls relative to puts, shows downside concerns in the lead-up to Friday's expiry. That said, the broader outlook remains constructive. "3-Day Put-Call Skew is Slightly Positive indicating some immediate downside protection demand while 30-Day Put-Call Skew is slightly Negative indicating a more bullish outlook over the medium term," Strijers said. Also expiring Friday are ether (ETH) options worth $2.8 billion.
