ChainCatcher report: Bitcoin futures open interest has risen above $50 billion for the first time this year. David Lawant, Head of Research at Anchorage Digital, stated that this is not a warning sign of excessive leverage, but rather an indication of market vitality, pointing to rising spot trading volumes and thinner order books as early signs of a Bitcoin market recovery. In his analysis, Lawant introduced the liquidity absorption ratio and explained how to identify shifts in Bitcoin market mechanics. He discussed the approximately $60 billion Bitcoin options market and its volatility curve, clarifying why short-term Bitcoin volatility remains elevated through 2026 and what information options data can reveal that price alone cannot. He also shared Anchorage’s backtesting experience with 37,000 covered call options and addressed how ETFs and treasury companies are transforming Bitcoin’s price discovery process.
Bitcoin options market shows new bullish mechanism, says Anchorage Digital
ChaincatcherShare
Summary
Bitcoin options market activity has surged, with open interest in futures rising above $50 billion for the first time this year, according to ChainCatcher. Anchorage Digital’s David Lawant said the growth reflects the vitality of the digital asset market, not excessive leverage. He pointed to rising spot volume and thinner order books as indicators of a strengthening market. Lawant also analyzed liquidity absorption ratios, volatility curves, and the $60 billion Bitcoin options market. He shared insights on volatility through 2026, covered call backtesting, and how ETFs and treasuries are reshaping Bitcoin’s price discovery.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.