Derivatives

Despite signals on the derivatives market that typically precede a rebound, XRP is struggling to attract buyers. The price dipped below $2, and both open interest and on-chain activity remain low, indicating a lack of confidence.

As Bitcoin trades between $84,000 and $92,000, some traders bet on a crash to $20,000 (€17,000) via put options, while others eye a rally to $200,000. Derivatives data shows extreme positions, but hedging and cheap options may drive the bets. Currently, BTC shows low volatility at around $92,700.

The U.S. Commodity Futures Trading Commission (CFTC) has launched a pilot program allowing Bitcoin, Ethereum, and USDC to be used as collateral for derivatives trading, a move expected to attract institutional capital back to the U.S.

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.