Analyst: Options and derivations will drive Bitcoin's market capitalization to surpass $10 trillion.

On September 28, CoinDesk analyst James Van Straten pointed out that options contracts and other derivatives will drive Bitcoin's market capitalization to at least $10 trillion. He believes that derivatives can not only attract more institutional investors to get on board but also effectively buffer the inherent high fluctuation risks in the digital money market. Van Straten uses the record high open interest in Bitcoin futures at the Chicago Mercantile Exchange (CME) as an example to illustrate that an important shift in market structure is occurring. He analyzes that this phenomenon is partly due to the widespread application of systematic volatility selling strategies (such as covered call options strategies), reflecting an increase in liquidity and maturing structure of the Bitcoin derivation market. At the same time, he also points out that the reduction in volatility has a two-way effect: while it can alleviate the common severe downturns in the crypto market, it also corresponds to a reduction in the high-yield surges that investors are accustomed to.