Bitcoin options traders are taking positions at high prices. Betting that the price of bitcoin will rise is becoming more expensive, says the CEO of an options platform.
Option traders expect bitcoin to jump as options expire on September 27.
Calls, or bullish bets, are more expensive than bearish ones, says Luc Strygers, CEO of Deribit, the largest crypto options exchange. DL News. He said that this is a sign that traders are increasing demand, thereby increasing prices.
This demand for calls is driving year-end options momentum. December's $5 billion options expiration is set to be the largest for the remainder of the year.
On Deribit, options pay if Bitcoin breaches $100,000 highly traded Expires December 27.
In the near term, 20% of all bullish bets expiring on Friday are already “in the money,” meaning they will pay off unless the price of Bitcoin falls.
Streisers said future volatility is likely to increase as traders reinvest returns from profitable bets.
IBIT options
The increase comes according to the US Securities and Exchange Commission last week the greenery The launch of options contracts on IBIT, BlackRock's $21 billion bitcoin exchange-traded fund.
The Office of the Comptroller of the Currency and the Commodity and Futures Trading Commission also need to sign off before the IBIT options launch, which is expected to happen next week.
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Analysts argue that the launch of IBIT options will be a bullish catalyst for Bitcoin.
“This will be a huge net positive for volumes across the entire derivatives complex,” Joshua Lim, co-founder of crypto trading firm Arbelos Markets, said in a statement. X post.
Jeff Park, Head of Alpha Strategies at crypto fund manager Bitwise, called Launch of Options in Bitcoin ETF “Game-Changer”
IBIT options represent the first time the financial world has acquired regulated options on a “truly supply-constrained” commodity, Park said.
He says this results in a so-called gamma squeeze – when the price of an asset rises rapidly due to a feedback loop of options buying activity.
However, Streisers noted that Derivative's Implied Volatility Index, a measure of options market volatility, was muted.
“The absence of any high indicates that the market is not expecting any short-term action,” he said.
There is Tim Craig DL News' Edinburgh-based DeFi correspondent. Reach out with tips at [email protected].
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