Call & put options are available for trading on Bitcoin. During the crash of Mt Gox, brokers who where using those prices delisted the options on Bitcoin. Now there are brokers once again offering bitcoin options based on BitStamp prices.
On June 27th the US Government will be auctioning off an estimated $17 million dollars worth of Bitcoins. The results for the auction will be released on Monday June 30th, 2014. The results will definitely have an impact on the price and future of Bitcoin for better or for worse.
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Bitcoin started circulating in January of 2009, and in 2013 binary option brokers started including bitcoins as a trading product on their platforms. Demand for bitcoin binary options fluctuates along with the volatility of the bitcoin prices. When news breaks regarding an extreme movement in bitcoins or the recent FBI bust of Silk Road, interest in binary options for bitcoins spikes.
Not all binary option brokers have the option to trade binary options on Bitcoin. The brokers who list options on bitcoins have them connected to the US Dollar which is the predominant way that bitcoins are priced.
The reason all binary option brokers have not started listing options on bitcoins is because of the lack of transparent pricing of bitcoins. Have a look at this table of bitcoin prices on bitcoincharts.com.
As you can see from the chart there are 12 different quotes for the price of bitcoins. Each broker will have their own source of pricing data, so be sure you know where that data is coming from. Liquidity in the bitcoin market is a major factor, and that is another reason for the huge swings in prices.
We do not know which option time frames are available for bitcoin binary options but we would probably stay away from trading 60 second options on bitcoins. Traders should seek out a longer time frame like daily, weekly or monthly options.
In February 2014, one of the largest bitcoin exchanges, MTGox halted withdrawals causing bitcoin prices on their exchange to fall from $650 to as low as $220 on February 17th. This caused some binary option brokers using the SpotOption platform to halt trading on bitcoin options due to the heavy volatility of bitcoin prices. Now brokers have once again started offering options based on the Bitstamp prices.