Traders Favor January Options for Bitcoin
Options market traders are showing optimism as Bitcoin surpasses $40,000 and they anticipate the approval of a spot Bitcoin ETF in early 2024. A recent report reveals that these traders are leaning towards January options.
December Options Share Drops Below 50%
The share of December options for BTC exceeded 50% last week but has now retreated below that mark. The increase in short-term options positions and the bullish outlook on the ETF are driving traders towards January options trading.
Bitcoin Surges Above $44,000
Bitcoin has experienced a surge, reaching over $44,000 on certain exchanges like Coinbase. This is the highest level since April 2022. The asset’s upward momentum is supported by decreasing interest rates and expectations of a spot Bitcoin ETF in the US.
Bull Market Influenced by Spot Trading
The current bull market in Bitcoin is primarily influenced by spot trading, with key derivatives indicators remaining stable. Futures premiums are maintaining a 10% level, and there are no significant increases in implied volatilities for options. This suggests a limited downside and a healthy bull market.
Hot Take: Bitcoin’s Bull Market Holds Strong
The surge in Bitcoin’s price and the anticipation of a spot Bitcoin ETF signal that the bull market is here to stay. Traders are optimistic about January options, and the limited downside suggests a healthy market. With decreasing interest rates and positive market dynamics, it remains to be seen if the bulls will continue to dominate.
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