The options market sends mixed signals between highs

As bitcoin holds its highs of around $44,000, the options market is showing mixed signals, according to options data tracking website Greeks.Live.

Notably, both Bitcoin and Ethereum block transactions saw a buying spread of $100 million combined. The dominance of deposit options, which accounted for $13 million for BTC and $88 million for ETH, reflects a broad sentiment among institutional players in favor of strike positions.

In particular, huge trades involving over-the-money (OTM) options, such as P1,600 for BTC and P37,000 for ETH, will expire at the end of January. These trades highlight the willingness of popular market players – such as giant whales – to consolidate positions held during periods of heightened market sentiment. Greeks.Live urges traders to be aware of downside risks in the options market and exercise caution. Since mid-October, Bitcoin has experienced a massive surge, with its price up more than 60 percent. This renewed optimism stems from expectations of a change in the Federal Reserve's monetary policy and the highly anticipated launch of the Bitcoin ETF. As for the latter, Dedebit notes that traders in the options market are increasingly bullish on Bitcoin, which recently hit $50,000 in January. This corresponds to the forecast of digital asset financial services platform Matrixport by the end of January 2024 following SEC approval.