The OCC has legalized options trading for the Bitcoin ETF, and this new market is rapidly expanding. BlackRock’s IBIT ETF received more than $425 million in options trading in a single day.
Traders have been unduly optimistic in their projections, betting almost $6 million that Bitcoin’s value will double in one month.
BlackRock’s Bitcoin ETF options
Since the OCC legalized options trading for the Bitcoin ETF, this new investment possibility has grown rapidly. For example, Grayscale has already filed for a new covered call, the Bitcoin ETF. According to Bloomberg ETF expert Eric Balchunas, BlackRock’s IBIT has emerged as the greatest gain.
“A few hundred million so far in options volume on IBIT (a ton for Day One). Here’s a rank of the contracts by volume, it’s almost all calls. Seems very bullish, especially the December 20 C100, which is basically betting price of BTC will double in the next month,” said Balchunas.
These Bitcoin options trades total more than $425 million and counting, with inflows constantly flowing in. These numbers are excellent on their own, but Balchunas also mentioned that the Put Call ratio is.17. This reflects the ratio of negative to positive predictions, indicating that these traders are betting heavily on Bitcoin’s growth.
By midafternoon, IBIT’s overall transaction volume had surpassed $3 billion. Even one week ago, $1 billion was considered a strong performance.
These options trading have boosted the main Bitcoin ETF, while other issuers such as Grayscale have only recently joined the market.
Meanwhile, spot Bitcoin ETFs are gaining traction. According to Farside Investors statistics, Bitcoin ETFs had an inflow of $816.4 million on Tuesday, as BTC reached a new all-time high.
These large fresh inflows have only fueled BlackRock’s sustained Bitcoin investment. According to statistics from ETF researcher Shaun Edmondson, US issuers have together acquired more over 2,800 BTC since Monday.
BlackRock alone bought more over 1,000 Bitcoin. Furthermore, ETF issuers currently own more than 5% of the entire Bitcoin supply.
Donald Trump confirmed these as US SEC Chair and Treasury Secretary?
These options trading have boosted the main Bitcoin ETF, while other issuers such as Grayscale have only recently joined the market.
Meanwhile, spot Bitcoin ETFs are gaining traction. According to Farside Investors statistics, Bitcoin ETFs had an inflow of $816.4 million on Tuesday, as BTC reached a new all-time high.
These large fresh inflows have only fueled BlackRock’s sustained Bitcoin investment. According to statistics from ETF researcher Shaun Edmondson, US issuers have together acquired more over 2,800 BTC since Monday.
BlackRock alone bought more over 1,000 Bitcoin. Furthermore, ETF issuers currently own more than 5% of the entire Bitcoin supply.
Trump considers Teresa Goody Guillen as US SEC Chair
As the Donald Trump transition team sought an SEC Chair, pro-crypto lawyer Teresa Goody Guillen emerged as a front-runner. Crypto firms support former SEC attorney Guillen because of her SEC background, Wall Street connections, and representation of blockchain companies against the agency.
Teresa Goody Guillen is a partner at the legal firm BakerHostetler, where she co-leads the blockchain practice. She can assist Trump in overhauling the policies implemented during Gary Gensler’s tenure and reducing bureaucracy.
Other SEC chair contenders include Brad Bondi, a crypto enthusiast, former SEC commissioner Paul Atkins, and former SEC general counsel Robert Stebbins. Pro-XRP lawyer John Deaton and Ripple CEO Brad Garlinghouse attacked Stebbins’ bid to replace Gensler.
Kevin Walsh leads for US Treasury Secretary position
According to FOX Business senior correspondent Charles Gasparino, Kevin Warsh is leading the pack of contenders for the role of US Treasury Secretary. According to Reuters, Trump will interview Warsh and Apollo Global Management CEO Marc Rowan for the Treasury position on Wednesday.
Breaking: Trust me on this — Kevin Warsh is in the lead position for @USTreasury as i have been reporting that doesn’t mean it’s a done deal but that’s what my sources have been saying
— Charles Gasparino (@CGasparino) November 20, 2024
Howard Lutnick, a DOGE founding member, has been chosen Commerce Secretary, broadening the Trump administration’s hunt for a Treasury head. The chances of Scott Bessent, founder of hedge fund manager Key Square Group, being the next US Treasury Secretary have also decreased recently.
Polymarket statistics show considerable variations in the probabilities for the top Treasury position. Mark Rowan now leads the prediction market with 53% of the odds.
SEC Chair and Treasury Secretary crucial for crypto industry
The selection of qualified individuals to lead these government organizations is critical for the crypto industry’s regulation and growth. Teresa Goody Guillen, as SEC Chair, can assist provide crypto regulatory clarity to the United States. Crypto leaders, like Ripple CEO Brad Garlinghouse, believe the SEC’s new leadership can help settle or dismiss cryptocurrency disputes.
John Deaton was dissatisfied with Bob Stebbins, the SEC’s head, and Kevin Warsh, the Treasury lead.
“I can’t think of a worse combined pick for those two positions. Lutnick at Commerce is great and the right choice (unless Warsh is the Treasury Secretary – then it should’ve been Lutnick).”
Bitcoin and altcoins may experience another surge wave once Trump nominates crypto-friendly SEC Chair and Treasury Secretary. The Bitcoin price today reached a new all-time high of 94,002.
Cardano rallies 137% in 2 weeks, but this key factor limits its potential
Cardano (ADA) has had a stunning surge over the last two weeks, reaching an eight-month high. With the price hovering around $0.80, the cryptocurrency has piqued the interest of investors.
However, conflicting signs point to an unclear route forward, with both optimistic and negative scenarios on the horizon.
Cardano could note a reversal
The MVRV Ratio for Cardano suggests that the cryptocurrency is now overpriced, which has raised worries among market players. Historically, a 30-day MVRV ratio of 11% to 20% was considered a risk zone for probable profit-taking.
Currently, the MVRV ratio has risen to an alarming 37%, much above this threshold. This means that ADA holders may begin to see profits shortly, perhaps leading to a price fall.
Despite the alarming MVRV levels, Cardano’s latest surge has been supported by robust investor interest. However, profit-taking may have a substantial influence on momentum if selling activity increases. The market is keeping a careful eye on these dynamics to see if the surge has enough power to last or if it will reverse soon.
Whale behavior has played a critical part in Cardano’s recent climb. Transaction volumes surpassing $100,000 have hit an eight-month high of $28 billion.
The increased presence of whales in the market provides ADA with some stability as it continues to grow. These large-scale investors are expected to continue to influence price fluctuations, especially if selling pressure develops.
While whales have so far supported the ADA’s march, their presence may have unintended consequences. If these significant players decide to sell their assets, the market may see a dramatic decline. Conversely, continuous whale activity may boost market confidence, minimizing possible losses.
ADA price prediction: Treading the highs
Cardano is now trading at around $0.80, slightly below the crucial resistance level of $0.81. Over the last two weeks, the cryptocurrency has risen by 137%, recovering price levels not seen since march. However, given the contradictory market signals, breaking through the $0.81 barrier seems difficult.
The chances of Cardano (ADA) hitting $1.00 look modest under present conditions, as the rally shows symptoms of consolidation. If the barrier at $0.81 stays strong, the cryptocurrency may settle below this level in the near future.
On the negative, if selling activity increases, Cardano may fall below $0.71. Any additional decrease from here would invalidate the bullish-neutral forecast, perhaps bringing the price down to $0.66.
