As optimism steadily increases in the market, the goal is to take a closer look at BTC’s impressive breakout above the $93,257 mark, analyze the positive sentiment driving its climb, and assess the potential for continued upward strength in the market.

Bullish Indicators: What’s Fueling BTC’s Uptrend?

Currently, on the 4-hour chart, BTC is sustaining its position after successfully surpassing the $93,257 mark while trading above the 100-day Simple Moving Average (SMA). By maintaining its position above this level and the 100-day SMA, BTC demonstrates resilience and capability for more price growth, targeting new highs.

An analysis of the 4-hour Relative Strength Index (RSI) shows a significant surge, climbing to 70% from its previous low of 56%, indicating strong bullish pressure for BTC. While this increase signals growing positive market sentiment, it raises concerns about the rally’s sustainability since a price correction could occur if profit-taking ensues.

Bitcoin is showing strong positive movement after breaking past the $93,257 level, supported by a rise above the 100-day SMA, reflecting sustained bullish strength and potential for continued upward movement. The fact that BTC is consistently above the 100-day SMA suggests a solid trend and that the bulls are eager to push prices higher, possibly leading to an extended growth if pressure continues to build.

Finally, the RSI on the daily chart is currently at 81%, well above the key 50% threshold, signaling a strong uptrend for Bitcoin. With the RSI at this level, it suggests that the upside pressure is likely to continue, which means that Bitcoin’s price could keep rising in the near term, as there are no signs of a reversal or decline.

What The $93,257 Breakout Signals For Bitcoin

The $93,257 breakout opens the door to a more optimistic future outlook for Bitcoin. This key resistance level has been decisively breached, suggesting that BTC may continue its upbeat momentum, potentially targeting higher price levels such as the $100,000 mark and beyond.

However, careful monitoring is essential for any signs of resistance or market corrections that could hinder its ascent. Should such a scenario occur, Bitcoin’s price could begin to drop toward the $93,257 mark. A break below this level might trigger further declines, possibly testing additional support levels in the process.

Bitcoin Price To Reach $139,000 Based On Previous Election Cycles

In an X post, TechDev predicted that the Bitcoin price could reach $139,000 in this bull run based on previous election cycles. In 2012, the Bitcoin price was $10 on election day, and a year later, BTC witnessed a 22.7x increase as it rallied to $245. In 2016, Bitcoin was $710 on election day and then recorded a 10.12x increase as it rallied to $7,200. 

Meanwhile, in 2020, the Bitcoin price was at $13,588 on election day. Then, it witnessed a 4.51x increase and rallied to $61,300 a year later. The analyst highlighted a pattern whereby Bitcoin’s price replicates its increase from the previous cycle plus an additional 44.5% surge, which led to Bitcoin’s price a year after the US elections. 

Based on this, TechDev noted that the BTC price could reach $139,000 if it replicates its 4.51x increase from the previous cycle plus an additional 44.5% surge. Bitcoin was trading at $69,400 on the day of the US presidential elections earlier this month. 

The US presidential elections have historically been bullish for the BTC price as the flagship crypto always hits new highs after every election cycle. It is also worth mentioning that Bitcoin never dropped below its price on election day. Moreover, this election cycle looks more bullish than others, considering the US now has its first-ever pro-crypto president. 

The Bitcoin price has reacted positively to Donald Trump’s victory, continuing to pump since Trump defeated Kamala Harris. The flagship crypto is now eyeing the $100,000 milestone, having surged over 37% since the start of this month. 

What Happens Next When BTC Hits The $100,000 Milestone

Crypto analyst Ali Martinez has provided insights into what could happen next after the BTC price hits the $100,000 milestone. In an X post, the analyst said that Bitcoin’s price action looks like it did in December 2020. He added that the Relative Strength Index is also nearly identical to the one in December 2020. 

If Bitcoin is to replicate the price action from that period, Martinez predicts that the Bitcoin price will rally to $108,000 after it hits $100,000 and then drop to $99,000 before it continues its uptrend and further rally to $135,000. Coincidentally, this comes close to TechDev’s target of $139,000 for Bitcoin. 

At the time of writing, the Bitcoin price is trading at around $97,000, up over 5% in the last 24 hours, according to data from CoinMarketCap. 

The recent surge in Bitcoin’s value is not just a market trend, but a reflection of the growing optimism surrounding incoming US President Donald Trump’s potential crypto-friendly policies and his pick for the Securities and Exchange Commission (SEC) chief.

This optimism has led to a 3% increase in the cumulative cryptocurrency market cap, now standing at $3.37 trillion. The 24-hour trading volume on Thursday saw a 5% increase, reaching $ 190 billion.

Bullish Trend Thanks To Trump’s Win

The obvious sign of the optimistic trend in the bitcoin market: its price has more than doubled this year. The whole industry has joined the upward surge, contributing an amazing $900 billion to the total crypto market capitalization. Given that Bitcoin is barely $3,000 short of the $100,000 milestone, the sector is bursting with hope about what the next few weeks can bring for the digital asset.

According to Edu Patel, CEO of Mudrex, Bitcoin’s price last year was $30,000. Today, the asset’s price surged to more than $97,000, reflecting a growth of over 300%.

Patel said several factors are pushing Bitcoin’s price, including Trump’s election and optimism over his pick as chairman of the SEC, and his friendly crypto policies. In addition, he also acknowledged the growing institutional participation in Bitcoin options and ETFs.

Is Trump Planning A Special Position To Oversee Crypto?

The recent price surge of Bitcoin underscores the growing importance of the asset and cryptocurrency to the economy. The Trump administration has also signaled the possibility of creating a specific office to oversee the administration’s cryptocurrency policies.

According to some sources, the president’s team is currently considering this office, and many crypto execs are jockeying for an audience with the president.

1/ MicroStrategy just convinced investors to pay $520,234 per Bitcoin

That’s the biggest Bitcoin play I’ve ever seen: pic.twitter.com/yeZfGlcm6j

�ELI5 of TLDR (@explain_briefly) November 20, 2024

Some experts also attribute Bitcoin’s recent run to MicroStrategy’s bold “Bitcoin-firstâ€?policy. Michael Saylor of MicroStrategy has doubled down on this approach and purchased additional BTC to boost its portfolio. Other companies have followed suit and are planning to add the asset to their inventories.

The growing popularity of Bitcoin ETFs also helps, and the market currently benefits from the introduction of options trading. According to multiple sources, more than $4 billion has flowed into Bitcoin ETFs since the November elections. Also, this week, Reuters reports that BlackRock is off to an exciting start with its BTC ETFs with call options.

Featured image from Pixabay, chart from TradingView

Key data from Coinglass reveals another significant milestone: Bitcoin’s Open Interest has reached an all-time high. This surge in Open Interest indicates a flood of capital entering the market, signaling heightened activity and confidence among traders. Such metrics further confirm the euphoric state of the market, where optimism reigns supreme and momentum continues to build.

With Bitcoin’s price rallying at an unprecedented pace and market indicators hitting record levels, the stage is set for what many believe to be an almost inevitable breakout above the psychological $100,000 level. The market’s focus is whether BTC can sustain its trajectory or if a temporary pullback will precede the next leg up. Either way, the spotlight remains firmly on Bitcoin as it cements its status as the leading force in this explosive bull run.

Bitcoin Greed Enters The Market 

Greed has gripped the Bitcoin market, with the average Fear and Greed Index hitting 76%, signaling heightened optimism among investors. This elevated level of greed suggests that market participants are buying aggressively, anticipating that Bitcoin’s price will continue its upward trajectory without significant setbacks. Such sentiment often leads to increased speculative behavior as traders look to capitalize on the ongoing rally.

Critical data from Coinglass supports this narrative, revealing that Bitcoin Open Interest—representing the total value of outstanding derivative contracts—has reached an all-time high of $62.69 billion.

This unprecedented figure highlights the speculative nature of the current market, as traders use leveraged instruments like futures to amplify their potential gains. While this fuels bullish momentum, it also adds volatility, making the market susceptible to sharp moves in either direction.

Interestingly, Bitcoin’s optimistic environment starkly contrasts the broader crypto market, where altcoins continue to struggle to reclaim yearly highs. While BTC leads the charge with record-breaking performance, altcoins have yet to catch up, underscoring Bitcoin’s dominance during this market cycle phase.

As speculative activity and investor optimism drive Bitcoin’s price action, the market waits to see if the rally has more fuel or if a correction looms. For now, Bitcoin remains the focal point of this euphoric bull run.

BTC Enters Price Discovery Again

Bitcoin is trading at $97,500 after setting a fresh all-time high, continuing its explosive rally. The market leader has entered price discovery—a phase often characterized by parabolic trends like the one currently driving BTC higher. Investor anticipation is growing, with the $100,000 mark only 2.5% away.

This psychological milestone could act as significant resistance, potentially holding Bitcoin down for an extended period. A consolidation phase around this level would benefit the broader market, allowing altcoins to catch up and the rally to maintain stability.

However, price discovery can be unpredictable. If Bitcoin fails to reach the $100,000 mark in the coming days, the market could see a pullback as bullish momentum cools. A retrace to lower demand zones, such as the $88,500 level, would provide the market with a necessary reset before the next leg upward.

Despite the possibility of a short-term correction, Bitcoin’s price action remains strong. Its dominance over the crypto market and the current euphoric sentiment suggest bulls are still firmly in control. As traders and investors closely monitor price movements, Bitcoin’s ability to push through key psychological levels will determine the next phase of this historic rally.

Featured image from Dall-E, chart from TradingView

#1 US Strategic Bitcoin Reserve Trade

Following Donald Trump’s victory in the US presidential election, market sentiment has shifted significantly. The initial “Trump trade” has evolved into the “US Bitcoin Reserve Trade,” fueled by speculation that President-elect Trump may establish a Strategic Bitcoin Reserve (SBR). This follows his pledge at the Bitcoin 2024 conference in Nashville.

Industry insiders like David Bailey, CEO of BTC Inc and a Trump campaign advisor, and Dennis Porter, CEO of Satoshi Act Fund, have hinted at the possibility of the SBR becoming a reality. Both have urged that the SBR be established within the first 100 days of Trump’s presidency through an executive order. They warn of the United States potentially falling behind in the global race to accumulate BTC.

Bailey revealed on November 9, “There is at least one nation-state that has been actively acquiring Bitcoin and is now a top 5 holder. Hopefully, we hear from them soon.” He emphasized his certainty with a meme, indicating his information is based on knowledge rather than speculation. Mike Novogratz, CEO of Galaxy Digital, confirmed in a recent interview with Bloomberg TV that “countries are already buying BTC in huge volumes.”

The “US Bitcoin Reserve Trade” is expected to continue until Trump’s inauguration on January 20. It remains to be seen whether Trump will follow through on his promises, potentially moving over 208,000 BTC confiscated by law enforcement into the reserve or even adopting Senator Cynthia Lummis’ Bitcoin Act proposal to purchase 1 million BTC over five years.

#2 Potential Appointment Of A ‘Crypto Czar’

A leak on Wednesday suggests that President-elect Trump’s team is in discussions about creating a new White House position dedicated solely to Bitcoin and crypto policy. Sources familiar with the transition efforts indicate that candidates are being vetted for this role.

If established, it would be the first-ever Bitcoin and crypto-specific White House position, underscoring the influence the nascent industry stands to wield in the incoming administration. It is unclear whether the role will be a senior White House staff position or a “crypto czar” overseeing policy and regulation across the federal government. Crypto industry advocates are pushing for the role to have a direct line to Trump – a massive news for the entire industry.

The introduction of Bitcoin ETF options has had a significant impact on the market. BlackRock’s iShares BTC Trust (IBIT) ETF options, launched on November 19, 2024, saw an unprecedented $1.9 billion in notional exposure on their first day of trading. Bloomberg ETF expert James Seyffart stated, “Final tally of IBIT’s 1st day of options is just shy of $1.9 billion in notional exposure traded via 354k contracts. 289k were Calls & 65k were Puts. That’s a ratio of 4.4:1. These options were almost certainly part of the move to the new Bitcoin all-time highs today.”

Jeff Park, Head of Alpha Strategies at Bitwise Invest, recently highlighted the game-changing nature of Bitcoin ETF options:

With the approval by the SEC to list and trade Bitcoin ETF options, we are on the verge of witnessing the most extraordinary upside ‘vol’ of ‘vol’ in financial history. For the first time, Bitcoin’s notional value will be ‘fractionally banked’ with ETF options. This marks the most monumental advancement possible for the crypto market.

Park explained that Bitcoin ETF options provide a regulated market where the Options Clearing Corporation (OCC) protects clearing members from counterparty risks, allowing Bitcoin’s synthetic notional exposure to grow exponentially. He emphasized that this could lead to an explosive recursive effect on Bitcoin’s price due to unique volatility characteristics and the “volatility smile.”

If there were one thing to read today re the game-changing nature of Bitcoin ETF options, read (and bookmark) this one for 2025 – it’s going to be wild. pic.twitter.com/On2DmUsbHX

�Jeff Park (@dgt10011) September 20, 2024

The latest rally has also been driven by significant activity in the spot market. Heavy spot bids have propelled the price higher, with yesterday’s BTC ETF inflows being a crucial factor. Inflows amounted to $773.4 million, with BlackRock contributing $626.5 million, Fidelity $133.9 million, Bitwise $9.2 million, and ARK Invest $3.8 million. Over the past three days, US spot Bitcoin ETFs have purchased a staggering $1.856 billion worth of Bitcoin.

Good morning,

Yesterday’s Bitcoin ETF flows were positive for $773.4 million.

Blackrock did $626.5 million, Fidelity $133.9 million. (BTC the mini-ETF is still missing data)

Price slowly climbing higher from $92K up to $97k now. Shitcoins are getting slaughtered.

source:�pic.twitter.com/WMYIj7WiYj

�WhalePanda (@WhalePanda) November 21, 2024

The total net asset value of US Bitcoin spot ETFs has exceeded $100 billion. Twelve Bitcoin ETFs, including those from BlackRock and Fidelity, were issued in January and have reached this milestone in just ten months.

At press time, BTC traded at $96,920.

This metric plays a significant role in understanding the holding patterns of different investor groups and the market’s response to price fluctuations. The realized price, calculated as the Realized Cap divided by the total supply, is pivotal for identifying cost bases among long-term holders and recent buyers.

According to tugbachain, the realized price levels for one-month and three-month periods often serve as critical zones during bull market corrections.

These levels provide a lens through which market sentiment, especially among smaller investors, can be analyzed, offering insights into the underlying dynamics that drive buying and selling activity.

Key Support Levels For BTC

The analyst identifies two specific realized price levelsâ€?75,100 and $62,400—as key cost bases for small investors. These levels are significant because they act as support zones during periods of market volatility.

tugbachain noted that historically, when Bitcoin’s price tests these levels, it often triggers buying reactions, highlighting the psychological and financial influence of these price points on smaller investors.

The CryptoQuant analyst also points out that these support levels reveal not only the patterns of small investors but also how their actions can be influenced, or even manipulated, in a bull market. In bullish cycles, it’s common for market dynamics to amplify fear among smaller investors, often prompting panic selling.

tugbachain concluded noting:

Monitoring these levels closely can provide valuable insights for making informed investment decisions.

Bitcoin Market Performance

Meanwhile, Bitcoin has just renewed its all-time high (ATH). So far BTC’s peak stand at $94,784. However, at the time of writing, the asset has retraced slightly away from this peak with a current trading price of $94,523 albeit still up by 3.1% in the past day.

While the asset has seen consistent upward momentum in recent weeks, CryptoQuant has shared an interesting analysis on whether it is time to sell or still hold BTC in a recent post on its official X account. Citing major key metrics, CryptoQuant mentioned BTC’s MVRV ratio.

According to the on-chain data provider platform, historically, an MVRV ratio greater than 3.7 suggests that Bitcoin has marked a market top. Fortunately, latest data shows BTC’s MVRV still remains below this level with a figure of 2.62 as of November 19.

Bitcoin Hits ATH: Is It Time to Sell or Hold?

MVRV > 3.7 has historically marked market tops.

Explore these 4 additional key metrics to better understand market timing and make more informed decisions.

Details below pic.twitter.com/ewavOhofBR

�CryptoQuant.com (@cryptoquant_com) November 19, 2024

Featured image created with DALL-E, Chart from TradingView

Nation-State Bitcoin FOMO Is Real

“Countries are already buying BTC in huge volumes—these are massive pools of capital entering the market. We’re witnessing global adoption at scale and the next rally could be massive. Buckle up. Caught up last week with Bloomberg TV, he stated via X.

In the Bloomberg interview, Novogratz elaborated on the unprecedented interest from sovereign entities. He mentioned a close associate—the person who introduced him to BTC in 2013—who is currently in the Middle East. “He’s never seen anything like it,” Novogratz said. “He’s convincing more people to buy Bitcoin in the three days he’s been there than any time in his whole career, and they’re huge pools of capital. And so we’re seeing something globally.”

Novogratz noted that when former President Donald Trump advocated in Nashville that he intended to be a “crypto president” and a “Bitcoin president,” it caught the attention of international leaders. “Other leaders heard that,” he remarked, suggesting that geopolitical factors could contribute to an “amazing rally” in the Bitcoin market.

When questioned about the likelihood of the United States establishing a Strategic BTC Reserve under a Trump presidency, Novogratz remained cautious. “I still think it’s a low probability,” he stated. He cited the complexities of US legislative processes, emphasizing that while the executive branch or the House might show enthusiasm, the Senate often urges restraint. “That’s the role of the Senate,” he said, pointing out that Republicans do not hold a 60-seat majority necessary to push through such initiatives unilaterally.

Nonetheless, Novogratz acknowledged the potential benefits of the US embracing Bitcoin at a strategic level. “It would be very smart for the United States to take the Bitcoin they have and maybe add some to it,” he suggested, adding that it would signal a commitment to being a “technology-first country, a crypto and digital asset-first country.” While he doesn’t believe the US dollar requires backing by Bitcoin, he admitted that if a Strategic Bitcoin Reserve were established, “Bitcoin heads to $500,000.”

He added: “If it happens in the short term without a Strategic Bitcoin Reserve, it’s going to mean six, seven, eight years,” Novogratz cautioned. “Then it’s just a scramble to get the hot commodity.” He expressed concerns that such a scenario could be indicative of hyperinflation, which historically leads to societal instability. “In every country that experiences hyperinflation, the results are really crappy,” he noted.

Discussing Bitcoin’s potential to rival gold as a store of value, Novogratz highlighted a generational shift in investment preferences. “The total market cap of gold is like $16 trillion,” he explained, which translates to approximately $800,000 per BTC if it were to reach parity. “When does Bitcoin become gold?” he asked rhetorically. Novogratz, who is turning 60 next week, admitted he still owns gold, calling himself “an old guy.”

However, he pointed out that younger generations are less inclined to invest in gold. “Forty-year-olds own no gold. Thirty-year-olds own none,” he observed. “As we see this generational shift, Bitcoin should match gold within five or ten years, and that gets you to $800,000.”

At press time, BTC traded at $93,000.

Key insights from CryptoQuant CEO Ki Young Ju shed light on the drivers of this historic surge. According to Ju, this rally has been powered by Coinbase investors, with U.S.-based buyers playing a significant role. The influx of demand from these investors underscores the growing domestic interest in Bitcoin and highlights the critical influence of American market participants on global crypto trends.

Adding to the excitement, market sentiment appears to be heavily influenced by the pro-crypto stance of President-elect Donald Trump. His support for digital assets has sparked optimism across the industry, potentially creating a favorable regulatory environment that could sustain Bitcoin’s growth.

Bitcoin Demand Continues To Drive The Price 

Bitcoin demand remains remarkably strong, even as miners and long-term holders (LTHs) take profits during this rally. Despite selling pressure from these groups, BTC continues to rise, underscoring the robust market appetite for the leading cryptocurrency. This strength suggests buyers readily absorb the distributed supply, fueling Bitcoin’s bullish momentum.

CryptoQuant CEO Ki Young Ju recently shared insightful data on X that highlights the driving forces behind this rally. According to Ju, U.S.-based investors using Coinbase have played a pivotal role in Bitcoin’s surge. He referenced the BTC Hourly Coinbase Premium (Volume-Weighted, USDT/USD Adjusted), which measures the difference in Bitcoin prices on Coinbase compared to other exchanges. 

The premium is currently positive and growing, indicating that U.S. investors are willing to pay more for BTC than their international counterparts. This trend demonstrates strong demand from U.S. market participants, likely buoyed by improving market sentiment and potential regulatory optimism.

If this upward momentum in U.S. demand persists, Bitcoin’s rally could extend further in the coming weeks, potentially setting new highs before any major correction occurs. However, as with all parabolic trends, traders and analysts remain cautious, recognizing the possibility of eventual pullbacks. The focus remains on Bitcoin’s strength, as buyers continue to outpace sellers, driving the market higher.

BTC Setting New Highs (Again) 

Bitcoin (BTC) is trading at $93,300, following its recent break above the all-time high (ATH) of $93,483. While this move marked a new milestone for BTC, the price has since entered a sideways range within a defined uptrend, indicating that demand continues to outweigh supply. However, the breakout above the ATH lacked significant momentum, resembling more of a small spring than a decisive rally. This suggests that bulls might be starting to lose steam.

Despite this, BTC’s ability to maintain above $89,800 in the coming hours will be critical. Holding this key support level could pave the way for a surge to $95,000, aligning with broader market expectations of continued bullish momentum. Such a move would likely reaffirm confidence among investors, potentially driving further buying interest as Bitcoin eyes the psychological $100,000 level.

On the other hand, a drop below $89,800 would shift the short-term narrative. This scenario could lead to a retrace toward lower demand zones around $85,000, where buyers might regroup to push prices higher again. As BTC consolidates near its ATH, the market awaits a decisive move to determine whether the bulls remain firmly in control or if a temporary correction is on the horizon.

Featured image from Dall-E, chart from TradingView

His analysis is consistent with Bernstein’s long-term projection, which serves to bolster the notion that Bitcoin may experience substantial growth in the years ahead.

These predictions have investors and analysts alike anxiously anticipating Bitcoin’s next significant move, as the market is currently in flux.

Decreasing Exchange Reserves May Indicate A Supply Shock

The consistent decline in Bitcoin reserves on exchanges is one of the most noteworthy trends identified by Crypto Rover. Despite the increasing price of Bitcoin, an increasing number of investors are transitioning their holdings to private wallets.

For the first time in #Bitcoin history, the balance of $BTC on exchanges is dropping during a bull run.

This cycle is different.

A MASSIVE SUPPLY SHOCK IS COMING. pic.twitter.com/Yw5ZSJ4l0z

�Crypto Rover (@rovercrc) November 18, 2024

This transition underscores an increasing preference for security over liquidity, particularly in light of persistent concerns regarding cyberattacks and breaches.

As the quantity of Bitcoin on exchanges declines, there could be an upcoming disturbance. Less coins for trading suggest that demand would soon exceed supply, which would cause prices to rise significantly. This tendency questions the conventional market dynamics, which usually show reserves rising in bull markets.

Bernstein’s $200K Target And Rover’s Bull Flag

A bull flag pattern is forming on the price charts of Bitcoin, as revealed by Rover’s technical analysis. This pattern frequently indicates the continuance of an upward trend. Rover predicts that Bitcoin may shortly surpass the $200,000 threshold if it surpasses critical resistance levels, as indicated by this pattern.

Bernstein analysts further align with this positive sentiment as they reaffirm their Bitcoin price target to reach $200,000 in 2025. Bernstein’s price objective of $100,000 is increasingly plausible, and the long-term forecast of achieving $200,000 by 2025 is gathering momentum, given that Bitcoin is already trading at approximately $92,000.

Daily Crypto Movers Nov. 19

•Bitcoin to $200K as Bernstein predicts a 2025 bull run •MicroStrategy adds 4.6B BTC at 88K avg •Goldman Sachs launches tokenized products

Learn more#Bitcoin #CryptoNews #KuCoin

�KuCoin (@kucoincom) November 19, 2024

They attribute this potential increase to a variety of factors, such as the favorable political and regulatory conditions for Bitcoin, which are notably prevalent under a pro-crypto U.S. administration.

Strong technical indicators combined with declining exchange reserves point to Bitcoin about to undergo a major comeback, which would be advantageous for investors. Little changes in demand could cause significant price swings as liquidity drops. This creates risks as well as possibilities, hence a careful plan and timing are especially important.

Bernstein also points out as a major influence the larger political terrain. Under the direction of incoming President Donald Trump especially, they hope that an atmosphere better suited for Bitcoin’s growth would help to drive its expansion even further.

Featured image from Pexels, chart from TradingView

Increased Liquidity And Reduced Volatility On The Horizon

According to Bloomberg, the introduction of options trading on the $43 billion iShares Bitcoin Trust is anticipated to reduce volatility while broadening Bitcoin’s investor base. 

Alex Thorn, head of firmwide research at Galaxy Digital, stated during a Bloomberg Television interview that as Bitcoin becomes more widely held, its volatility is likely to decrease. “Options will help dampen volatility, and as volatility comes down, people can take larger position sizes,â€?he explained.

Thorn noted that a decrease in volatility could shift investor sentiment, encouraging them to view Bitcoin as a viable asset for fundamental use cases rather than merely a speculative gamble. 

The availability of options will also enable institutions to hedge their positions more effectively, increasing liquidity and potentially impacting retail trading during bullish market conditions.

Call Options Dominate BlackRock’s Bitcoin ETF On Day 1

Bloomberg ETF analysts Eric Balchunas and James Seyffart reported that on the first day of options trading, the total notional exposure for IBIT reached nearly $1.9 billion, spread across 354,000 contracts. 

Of these contracts, 289,000 were calls, while 65,000 were puts, resulting in a bullish call to put ratio of 4.4:1. Seyffart claimed that this overwhelming interest in call options contributed to Bitcoin hitting new all-time highs of $94,000 during Tuesday’s trading session for the market’s leading crypto.

Balchunas, on the other hand, pointed out that the majority of options contracts are bullish, especially the December 20 call option, which essentially bets that the Bitcoin price will double within a month. This means that based on current prices, investors are expecting BTC to hit a new record high of little over $180,000 by that date. 

The put/call volume ratio for BlackRock’s Bitcoin ETF was “impressive,” according to Balchunas, who noted that the ratio of 0.17 indicates strong bullish sentiment compared to other ETFs, such as the SPDR S&P 500 ETF (SPY) with a ratio of 1.1.

Market expert Marty Party highlighted in a social media post that options on the iShares Bitcoin Trust will settle in actual Bitcoin. This means that when an option contract is exercised, settlement will involve the delivery of Bitcoin, giving investors direct exposure to BTC price movements without the need to interact with crypto exchanges. 

At the time of writing, the market’s leading digital asset is trading at $91,580, up 4% in the weekly time frame after today’s bullish move to its new high. 

Featured image from DALL-E, chart from TradingView.com