Deribit clients can bet on Bitcoin rising to $100,000

The cryptocurrency derivatives exchange Deribit expanded the list of strike prices for Bitcoin options to $100,000. Such a strike is available in the contract expiring on September 24, 2021.

We’ve introduced the $100K strike for the BTC-24SEP21 expiry. 🚀#Bitcoin

— Deribit (@DeribitExchange) December 17, 2020

Deribit explained it as being driven by market demand. On Thursday, December 17, the price of Bitcoin reached a new all-time high, climbing above $23,700 (Bitstamp).

As of now, users have purchased 52 call contracts and none of the puts.

Deribit data point to optimism among traders willing to pay $940 (at the time of writing) for Bitcoin to rise more than fourfold in the next three quarters. If Bitcoin’s price exceeds the psychological milestone, these \”calls\” will move into the money. Currently they sit deeply out-of-the-money.

The option holder has the right to buy or sell Bitcoin (on Deribit, each contract is equivalent to one Bitcoin) at the strike price on a given date (the expiry date). The seller is obliged to buy or sell the asset on the option holder’s demand. The latter pays the seller a sum of money at the time of purchasing the contract — the so-called premium.

A primer on how options work is in our material.

Earlier, Deribit required all users to undergo verification by year-end. The platform followed a similar move by BitMEX, which launched a new KYC programme in August.

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