During Bitcoin’s surge to $44,000, option traders have adopted a bullish stance, anticipating a $50,000 price target by January 2024. Their optimism is tied to the potential approval of a spot Bitcoin ETF, expected within the first ten days of 2024.
Greeks.Live, an options trading platform, notes fluctuations in BTC’s December options share. After surpassing 50% last week, recent market developments have pushed it below this threshold. This shift is attributed to a surge in short-term options positions influenced by current market trends.
Furthermore, traders expressing optimism about the ETF are favoring January options. The current market activity echoes the heightened atmosphere observed at the end of 2020. Bitcoin, with a significant 60% surge since mid-October, remains stable around $44,000 as of Wednesday.
In November, combined trading volume in centralized exchanges witnessed a notable 40.7% increase to $3.61 trillion, the highest since March. Derivatives trading, particularly cash-settled options and futures contracts, continues to play a significant role in the cryptocurrency market, offering flexibility amid crypto-related challenges like custody.
Bitcoin Price At New All-Time High
Currently, BTC is trading at levels reminiscent of December 2021, and the anticipation surrounding the approval of the inaugural spot Bitcoin ETF sustains a bullish market sentiment, likely leading to increased Bitcoin price volatility.With the potential introduction of a Bitcoin ETF and a resurgence in risk-taking across broader financial markets, traders anticipate growing interest in the cryptocurrency space.Greg Magadini, Director of Derivatives at Amberdata, observes, “As BTC moves higher, volatility has followed this year. A sustained bull market might bring back more volatility in the short and medium term.”Cryptocurrency analyst Ali Martinez identifies a stable support level for Bitcoin at $42,700, backed by 642,000 wallets holding 347,000 BTC at this price. In a continued bullish trend, a potential push toward the next significant supply zone at $47,300 is noted, where 614,000 wallets hold 427,000 BTC. Conversely, breaching the $42,700 support could shift attention to the next critical area at $38,000.
