Bitcoin has recently risen to the level of $44,000, and option investors have started taking positions with the expectation that the largest cryptocurrency will reach $50,000 by the end of January 2024. The possibility of approval of a spot Bitcoin ETF in the first ten days of 2024 in the US is dampening investors’ bearish expectations.
Greeks.Live, a platform for option investors, reported high volatility in the December option share of BTC. The share rose to over 50% last week but has since fallen below this figure with recent market developments. This dynamic has led to a significant increase in short-term option positions driven by short-term market trends.
In addition, investors are preferring January options as they expect a rise based on ETF approval. Current market activity reflects the high level of activity observed at the end of 2020.
Bitcoin’s price has shown an increase of over 60% since mid-October, especially in light of speculation about the potential approval of a Bitcoin ETF application submitted by BlackRock, the world’s largest asset management company, to the US Securities and Exchange Commission (SEC). BTC is currently trading relatively steadily around $44,000.
The total volume of spot and derivative transactions in centralized crypto exchanges reached $3.61 trillion in November, an increase of 40.7%. According to CCData, this $3.61 trillion figure represents the highest amount recorded since March. Derivative trading, including options and futures, continues to play an important role in the crypto market and is rapidly gaining popularity.