Analyst: Options and derivatives may drive Bitcoin's market cap to $10 trillion
According to ChainCatcher, market analyst James Van Straten pointed out that derivatives such as options contracts will drive bitcoin's market capitalization to at least $10 trillion. He believes that derivatives can not only attract more institutional investors, but also effectively buffer the inherent high volatility risks of the digital currency market.
Van Straten cited the record high open interest in bitcoin futures on the Chicago Mercantile Exchange (CME) as an example, illustrating that the market structure is undergoing a significant transformation. He analyzed that this phenomenon is partly due to the widespread adoption of systematic volatility selling strategies (such as covered call options strategies), reflecting enhanced liquidity and increasing maturity in the bitcoin derivatives market. At the same time, he also pointed out that lower volatility has a two-way impact: while it can mitigate the sharp declines commonly seen in the crypto market, the high-yield surges that investors are accustomed to will also decrease accordingly.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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