​​Bitcoin options reach highest point since 2021 amid banking | Global CRYPTO News

​​Bitcoin options reach highest point since 2021 amid banking crisis

Bitcoin option volumes reached their highest point since October 2021 when the price of bitcoin reach a high of over $60,000 amid a crisis in banking. The market is "pricing in looser monetary conditions," said Anand Gomes, co-founder at Paradigm, an institutional liquidity provider, because "the Fed can't hike rates anymore."

The volume of bitcoin options trading was $7.94 billion this week, according to data from The Block, as traditional financial markets are seeing significant volatility. According to Laura Vidiella, vice president at LedgerPrime, the reason has more to do with volatility. "High volatility and high trading volume are generally very correlated especially for liquid assets," she said, which is why Paradigm had record volumes this week, doing over $1 billion in a single day. Another reason for the rally, Vidiella said, is that investors are buying bitcoin as a way to get their funds out of banks with a high risk of failure.