Options

Long-term Bitcoin holders are using covered call options to generate yield, creating hidden selling pressure that counteracts ETF inflows and explains Bitcoin’s recent underperformance.

As the year ends, the Bitcoin market shows a wait-and-see attitude, with traders shifting their hopes for a rally to early 2026. Options data and seasonal factors suggest limited short-term movement, while long-term sentiment remains positive.

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.

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.

Nasdaq is proposing to quadruple the daily options contract limit for BlackRock’s iShares Bitcoin Trust (IBIT) to one million, a level currently reserved for major stocks like Apple and Nvidia. The move is driven by massive trading volume and growing institutional demand, signaling Bitcoin’s maturation as a mainstream financial asset.

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.