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Bullish option dates give hope to Ethereum and Bitcoin investors

Source: AdobeStock / Clement

Big option deals that appear to be betting on a year-end rally for Ethereum (ETH) and higher Bitcoin (BTC) prices in January are attracting the attention of some crypto traders.

The bullish bets on BTC and ETH were on. seen estate, the crypto derivatives exchange that accounts for the majority of the volume and open interest in the BTC and ETH options market.

Deribit Insights first shared the data on Twitter, saying that a large fund has $ 4 million.

They said a single “whale” spent $ 2 million on BTC call options, with the strike price of $ 55,000 expiring in January.

Call options with strike prices above the current market price of an asset are essentially bets that the price will move above the strike price by the expiration date and trigger a large payout. If not, the option will expire worthless and the money spent on the purchase will be lost.

Regarding action in the options market, Tony Stewart, the analyst behind Deribit’s weekly options market updates, described the trades as “verified bullish beta games,” meaning traders are betting on more volatility in the underlying spot market.

He also said it differs from “some of the more tactically perceived psyops of recent call purchases that were accompanied by a settlement from Spot,” suggesting that the spot market might see stronger support from buyers this time around.

The remarkably bullish activity in the options market, especially for Ethereum, was also pointed out by Zhu Su, CEO and co-founder of., On Monday Three arrows capital and a contributor to Deribit Insights.

“Appropriate ETH call purchases on the Deribit Exchange,” wrote Zhu, sharing a screenshot showing the large call options trades that expire at the end of the year for 14,000 and 18,500 contracts with exercise prices of US $ 4,200 and US $ 4,400, respectively indicates.

The 14,000 call option contracts with an exercise price of USD 4,200 would give the option buyer the opportunity to acquire ETH 14,000 at the price of USD 4,200 on the 31st.

Although the big trades in both the Bitcoin and Ethereum options markets are implicit bets on an increase in price, options are also used by individual traders and institutions for risk hedging or as part of more complex market-neutral strategies.

As such, interpreting options data can be challenging, but it still provides valuable insight into the positioning of some of the biggest players in the market at the end of the year.

At 14:49 UTC on Monday, BTC was trading at $ 45,827, down 3.5% in the last 24 hours and 8.3% in the last 7 days. At the same time, ETH was at $ 3,799, down 4% in the last 24 hours and 8.2% in the week.

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