Bitcoin Options Market: $80 Billion Power

In recent times, the Bitcoin (BTC) options market has attracted attention, reaching a value of $80 billion, becoming an important factor influencing price movements. According to a report published by crypto-focused trading firm FalconX, Bitcoin options have now gone beyond being merely a derivative instrument and have started to directly affect price formation.

The report from FalconX reveals that the open position volume of Bitcoin options has increased from $8 billion at the beginning of the year to approximately $80 billion. This means it has reached a similar level to the Bitcoin futures market. The report emphasizes that this growth has led to a fundamental change in risk management and position-taking strategies among crypto investors. The options market is now considered a key indicator for understanding future expectations for investors.

Behind this notable rise are two main platforms: Deribit and options linked to BlackRock's iShares Bitcoin Trust (IBIT). Deribit stands out for crypto-focused investors' short-term strategies, while IBIT options are favored by institutional investors for more cautious and long-term "call-heavy" strategies. According to FalconX data, the put/call ratio on Deribit hovers around 0.5–0.6, while on the IBIT side, this ratio is about 0.3. This indicates that the upward trend seen in IBIT is stronger.

Although expected volatility is anticipated to decline throughout 2025, it is observed that the balance with realized volatility is maintained; this indicates that there is still a risk premium present in the market. However, FalconX warns investors that a potential macroeconomic shock or regulatory change could quickly reverse this balance.

The report also mentions that Ethereum (ETH) options exhibit higher volatility compared to Bitcoin due to staking and DeFi flows. On the Bitcoin side, the tendency of miners and large investors to generate income by selling options seems to have contributed to the decline in volatility. In the conclusion section, FalconX states, “Crypto options are no longer a niche tool. Deribit has become a key indicator for tracking short-term movements, while IBIT serves as a measure for understanding institutional trends.”