Overview

• CME open interest in Bitcoin options has reached an all-time high, which analysts cite as evidence of deeper liquidity and a maturing market structure.
• Market analyst James Van Straten predicts expanding derivatives use, including covered-call strategies, could help propel Bitcoin’s market cap to at least $10 trillion.
• Growing reliance on options and futures is described as dampening extreme price swings, offering greater stability that institutions often require.
• Reduced volatility could also mean fewer outsized rallies, creating a trade-off for traders who seek dramatic moves.
• Analysts such as Seamus Rocca and Matthew Kratter argue that investor psychology and past institutional missteps, including failures at FTX, Grayscale and Genesis, may still shape future cycles.