The expiration of options contracts in the cryptocurrency, added to the presidential elections in the US, promise to boost BTC
24.10.2024 • 08:19hs • Record in November?
Bitcoin (BTC) hit an all-time high of $73,000 in March of this year and the crypto community remains expectant of a new record before the end of 2024.
In this context, November appears to be a month with upward potential for the ecosystem, due to a multiplicity of factors.
First of all, the long-awaited presidential elections in the United States, which, regardless of whether he wins Donald Trump o Kamala Harrispromise to unravel a candidate with pro-crypto stances.
But also, the open interest (OI) of BTC options for crypto contracts expiring at the end of November They are positioned around the u$s80.000.
Bitcoin: they anticipate that it would reach US,000 in November
According to data from derivatives exchange Deribit, the implied volatility of Bitcoin options expiring around November 5 (same date as the US elections) shows a clear trend towards buying optionswhich would boost the price of the cryptocurrency.
The perspectives coincided with a all-time high for Bitcoin options open interest in the Chicago Mercantile Exchange (CME) above 172,400 BTC, on October 16.
Bitcoin (BTC) Could Hit New All-Time High in November
Open interest in Bitcoin refers to the total number of futures contracts that are active and unsettled in the market, a crucial indicator for understanding cryptocurrency futures market activity and liquidity.
It is used as indicator to determine market sentiment and the force behind price trendsaccording to demand and supply. Represents the number of contracts that were opened, but not yet closed or cleared through physical delivery.
“I think the market consensus is that Bitcoin is likely to do well regardless of the election outcome. Our analysis shows that options activity surrounding the upcoming election exhibits a notable upside bias,” said David Lawant, head of research at FalconX to Bloomberg.
Meanwhile, Jake Ostrovskis, over-the-counter trader at Wintermute, detailed that call option premiums remain higher than average, and suggested that investors are more “interested in benefiting from an increase in price than in protecting against falls“.
“This indicates that investors are leveraging the options market more as a tool to capture potential upside than as a hedge against downside risks,” Lawant added.
Additionally, Bitcoin futures traders are more bullish for the end of 2024, with projections reaching as high as six figures for the cryptocurrency. The OI for calls expiring on December 27 It is grouped around US$80,000 and US$100,000.according to Deribit data.
