Originally published on: November 13, 2024
As the Bitcoin market gears up for the year-end $11.8 billion options expiry on Dec. 27, exciting opportunities and risks lie ahead. Recent data indicates a strong preference for call options, hinting at a potential surge in Bitcoin’s price. However, bears could thwart this momentum by keeping the price below $75,000.
According to data from Laevitas, the total open interest for call options is currently at $7.9 billion, overshadowing put options at $3.92 billion. This bullish sentiment is fueled by Bitcoin’s impressive 29% rally since October, rendering most put options worthless.
Deribit leads the options market with a commanding 74% market share, followed by the CME and Binance. These key players will play a crucial role in shaping Bitcoin’s price movements as the expiry date approaches.
The recent victory of President-elect Donald Trump has injected optimism into the market, given his pro-crypto stance and promise to streamline regulations. Additionally, the growing support for Bitcoin from lawmakers signals a positive outlook for the cryptocurrency.
As Bitcoin hovers around $88,000, with a potential rally to $90,500 by Dec. 27, the options market points towards a bullish trend for Bitcoin in early 2025. To avoid a significant downturn, bears must aim for a price drop to around $74,500, while bulls can maximize gains by pushing the price to $90,500.
In conclusion, the upcoming options expiry presents a golden opportunity for investors to capitalize on Bitcoin’s potential surge towards the coveted $100,000 milestone. Stay tuned for more insights and updates on the evolving cryptocurrency market.
