Derivatives

A large batch of Bitcoin options worth $3.4 billion is set to expire today, potentially causing market volatility as traders close or adjust their positions.

Ethereum’s price jumped 9.5% to around $3,050, coinciding with a surge in optimistic derivatives positions. Traders are heavily betting on a further rise to €5,600 ($6,500), with over €326 million in open interest for call options at that strike price, despite the asset’s 35% decline this quarter.

Following a significant market crash, analysts suggest Bitcoin’s market structure is improving. Mid-sized investors are accumulating BTC while risky leverage positions are being flushed out, potentially setting the stage for a healthier market.

A mysterious investor has placed a massive bet on Bitcoin’s price rising before Christmas, using a complex options strategy. The bet, structured as a ‘call condor,’ suggests the trader expects a rally to a specific range but not a new all-time high.

Bitcoin is attempting a recovery towards the $90,000 mark after recent heavy losses, but while selling pressure eases, derivatives traders are largely betting on further declines.