Bitcoin's Surge Sparks $100 Million in Crypto Option Deals

The price of Bitcoin (BTC) has surged back to the $44,000 mark, marking a remarkable comeback. According to experts at Greeks Live, this surge has led to a cascade of "block trades" involving call options, totaling over $100 million in just the past two hours. This surge has revitalized the market, which had previously been relatively tranquil. Moreover, researchers have noted an increase in all key indicators of implied volatility (IV).

In contrast to the flagship cryptocurrency, Bitcoin, the Ethereum (ETH) market is experiencing a divergence in its trend. Today, "block trades" worth over $100 million were executed for the purchase of put options. Even as the prices of Ethereum rise, these contracts continue to dominate the market. Researchers affirm that long positions remain concentrated on BTC, while ETH continues to be dominated by short positions.

Call options are financial derivatives that grant the right, but not the obligation, to purchase an asset (e.g., Bitcoin) at a pre-agreed price (strike) at a specific point in time. Implied volatility (IV) is a market volatility indicator that determines the expected price fluctuation of an asset. Block puts refer to transactions involving the purchase of a large number of put options.

As of the evening of December 20, 2023, the price of Bitcoin stands at $43,960, reflecting a nearly 3.3% increase over the past 24 hours. The digital coin's market capitalization has reached $860.7 billion, with daily trading volumes of $25.13 billion. Bitcoin's dominance in the market is at 52.2%, and the Greed and Fear Index has risen to 74 out of 100.

Turning to Ethereum (ETH), the digital currency is trading at $2,245, representing a 2.15% increase in the last 24 hours. The total supply of circulating assets is valued at $265.89 billion, with daily trading volumes of $11.17 billion.