"Damn, what will the options trader do when the spot BTC ETF is approved?"
The price of the cryptocurrency king Bitcoin that managed to break through $44,000 on December 5, 2023 has led options market traders* to be very optimistic that the spot BTC ETF will be approved in early January 2024.
*Individuals who profit by buying and selling stock options
There is no denying that the option share for BTC in December 2023 has exceeded 50%, but it has started to retreat below that level following the price rally that the rest of the crypto market has done this week.
Through observation, the significant rise in short-term options positions has been fueled by positive sentiment surrounding the crypto market, so traders who believe the price of the digital asset will rise if the ETF is approved may start trading options in January 2024.
The futures premium is found to maintain around 10% and there is no significant increase in implied volatilities (IV), therefore the crypto market is currently still in strong momentum to go up again.
BTC saw a rise above $44,000 on certain crypto exchanges such as Coinbase where it marked the first time its price reached that level since early April 2022.
Please be informed that the surge in BTC price is not only driven by the expected approval of spot BTC ETF in the United States (US) but also due to the decrease in interest rates which in turn has a positive impact on risky assets such as digital assets.
As of this writing, the price of BTC which is currently trading at $43,420 has recorded a slight gain of around 1.04% in the last 24 hours with a market cap of $849 billion but is still up 14.53% over the last week.
