By Michael Scott
Despite the record Bitcoin and Ethereum options expiring, the crypto market retains a bullish outlook.
The crypto market has since Dec. 18 witnessed a sustained decline as assets surrender the gains attained post the re-election of Donald Trump. Profit-taking could be a reason since the crypto assets test unchartered territories.
Geeks.Live reveals in a Dec. 27 X post the options expired hit a record $18 billion to yield the largest expiry in 2024. Bitcoin retained its dominance in the volumes of contracts that concluded. Ethereum, too, has seen a significant number expire.
Bitcoin Options Expiry
Bitcoin hit a rough patch in mid-December, where 150,000 BTC options, translating to $14.7 billion in value, expired. Specifically, the contract’s expiry had a 0.69 put-call ratio.
The figure indicates that more call options are featured in the trade, unlike put options. It confirmed that most investors are leaning toward the bullish market outlook. Additionally, Ethereum options had 1.12 million expiring translating to a value of $3.74 billion.
Despite the record-high expirations, the crypto market has witnessed a relatively quiet spell without major volatility. The calmness is attributed to the potential overlap with the Christmas holiday. Nonetheless, experts are optimistic about an imminent recovery.
The options expire as Bitcoin struggles to navigate the Fed-led slump. While a mild uptick took Bitcoin to $96,329, it encountered resistance to ending in a slight tumble to $94,226 per CoinGecko data. Ethereum too, registered 0.8% intraday gains to trade at $3,380.
Beyond the passive movement witnessed in the market today, Bitcoin has in the past realized strong impressive gains this year. The Bitcoin price has surpassed double the figures this year to surge 150% from $42,000 to a peak at $108,300.
Reflecting on Bitcoin performance shows that the premier token rose would sustain the bullish run in the race to spot BTC exchange-traded funds. Their approval saw Bitcoin attract institutional interest, coinciding with a huge inflow.
The greenlight of Bitcoin-focused spot ETF in the US translated to a new peak price of $73,000. Unfortunately, Bitcoin struggled to hold on to the high levels as it plunged below $49,000 as the German government sold the confiscated BTC in July.
Bitcoin would recover from the extended decline, particularly with the re-election of Donald Trump. The president-elect promised in his campaign trail to establish a national stockpile an initiative that has elevated the Bitcoin price further.
The post-election rally benefited altcoins primarily XRP, to set a multi-year peak at $2.92 as Ethereum settled on a fresh year peak above $4,100. The rally is attributed to hopes of a pro-crypto regulatory environment in 2025 as Trump returns to the Oval Office.
The strong performance of Bitcoin has lifted sentiment across the altcoin communities as analysts project a further upward trajectory heading into 2025.
Bitcoin Path to $200K
The crypto enthusiasts anticipate Donald Trump’s administration a crypto-friendly atmosphere to reverse the regulatory-by-enforcement approach under Gary Gensler as SEC chair. His resignation and replacement by Paul Atkins is projected to bolster the crypto market sentiment further.
Market commentators consider the presence of seasoned crypto advocates, including Elon Musk, David Sacks and Paul Atkins, will bring more energy towards the digital assets industry. Their involvement will help promote crypto innovation, thus bolstering prices for Bitcoin and altcoins.
A key driver of Bitcoin price growth in 2025 is the likely crypto adoption by leading corporations and governments. Besides Michael Saylor’s MicroStrategy, other entities, including Matador Technologies, Rumble and Metaplanet, have integrated Bitcoin into their reserve asset.
A more promising outlook for Bitcoin in 2025 is imminent, particularly with the US joining Brazil, Poland and Russia to add BTC into their strategic reserve. This possibility prompts the conservative projection of Bitcoin surpassing $200K in 2025.