According to Bloomberg, the Bitcoin and Ether options trading platform may be worth up to $5 billion.
Can this week’s $13.6 billion Bitcoin options expiry trigger a BTC price rally to $100,000 and beyond?
Bitcoin unexpectedly fell under $92,000 on Nov. 25. Do bulls still have a chance to rally to $100,000?
November's expiry is due Friday at 08:00 UTC, with $9.4 billion in options expiry for bitcoin.Bitcoin's max pain price is $78,000, significantly lower than the current spot price. The majority of the put open interest represent hedging activity and not outright downside bets: European Head of Research at Bitwise - Dragosch.
According to Deribit, the exchange will include USDe in its cross-collateral pool as of early January 2025, pending regulatory approval.
BTC futures expiring in March, June and September 2025 trade at prices greater than $100,000, according to data source Deribit.
Bitcoin analysts and traders have long dreamed of a $100,000 BTC price, but what would the achievement mean for derivatives markets?
Bitcoin’s ability to reach and hold the $100,000 level will be influenced by the upcoming $11.8 billion options expiry.
"It looks like bitcoin options traders appear to be hedging their bets to the downside ahead of the U.S. election this week," one observer said, noting pricier puts on the CME.
BTC has registered its first three-week winning trend since February.
Ethereum price showed strength in September, but data suggests holding above $2,600 will be a challenge.
Will this week’s $8.1 billion Bitcoin options expiry fuel a rally to $70,000 or should traders anticipate a correction?
Will this week’s $8.1 billion Bitcoin options expiry fuel a rally to $70,000 or should traders anticipate a correction?
Bitcoin price fell closer to $56,000, leading traders to question whether the bull market is coming to an end. US job market data could hold the answer.
Bitcoin traders expect BTC to rally if the Fed rolls out a 0.50% rate cut, but hedging these bullish positions is also necessary. Here is how it's done.
Investors balance risk as Bitcoin futures dip, reflecting uncertainty before the Federal Reserve's September meeting.
So far, Bitcoin has seen significant volatility in the last trading session, hinting at frail investor sentiment. Earlier today, the asset soared to as high as $57,300. However, the asset now appears to have run out of steam after reaching this mark as it trades at $55,966, down by 1.6%. This surge in volatility is a sign that the market has become more fearful as traders watch several key technical levels. However, the latest data suggests a shift in trader patterns as more defensive strategies are sought. Analysts from the ETC Group report have noted a substantial increase in the open interest in Bitcoin options, pointing towards a strategic preference for downside protection. This is illustrated by the spike in implied volatility for short-dated options, indicative of more near-term price action. Related Reading: Bitcoin Starts July On A Bearish Note, Will CPI Data Change The Narrative This Week? Insights from the Options Market: A Glimpse into Trader Sentiments The Bitcoin options trading market has given a glimpse of the current market mood. Recent data from Deribit show a put-call ratio—a metric that compares the trading volume of put options versus call options—higher than 1, indicating that the market is still bearish based on what traders are doing. This ratio indicates a higher volume of trades betting on or hedging against a further price drop. The fact that we are seeing such alignment in the market indicates a sizable segment of the market is bracing for the possibility of Bitcoin continuing its descent. ETC Group analysts agree with such a view, noting the peculiar term structure of volatility: higher implied volatilities in short-dated options versus longer-dated ones—a traditional characteristic of excessive bearishness on the market. The analysts particularly noted: Both the spike in put-call volume ratios as well as 1-month 25-delta option skew signalled a significant increase in demand for downside protection. BTC option implied volatilities have also increased slightly during the latest leg down. Implied volatilities of 1-month ATM Bitcoin options are currently at around 50.5% p.a. The term structure of volatility is also inverted now with short-dated options trading at significantly higher implied volatilities than longer-dated options. This tends to be a sign of overextended bearishness in the options market. Navigating Through Market Uncertainty These dynamics are being felt heavily in the market, with many prominent voices commenting on potential pathways for Bitcoin. Long-time trader Peter Brandt hints he expects Bitcoin to form a double top setup, a bearish flag implying price drawdowns as deep as even $44K. Brandt, however, also accepts that the construction might not meet all requirements of a technical pattern and allows for different price consequences. A more positive view comes from Timothy Peterson. He said that as Bitcoin can end July above $50,000, it has a “strong chance” of either hanging onto or even increasing in value into October. Related Reading: Is Bitcoin Undervalued Now? Industry Expert Decodes The Market State According to Peterson, the chances are 60% that Bitcoin could trade quarter in the coming months and a 25% chance that Bitcoin will cross its all-time highs within the next three months. Featured image created with DALL-E, Chart from TradingView
Over 25% of options are set to expire "in the money," Deribit's Luuk Strijers told CoinDesk.
Derivatives exchange Deribit is the first to integrate FalconX’s Prime Connect.
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Ether price dropped 14% as the entire crypto market sold-off, but derivatives data points to a silver lining.
Institutional investor interest soars as Bitcoin options open interest hits record high.