Caution dominates the options market for the leading cryptocurrency, and bets on heightened volatility are building as Donald Trump’s inauguration as US president approaches on 20 January, reports The Block.
According to Derive.xyz, the share of puts in open interest jumped from 20% to 40% over the past week, signalling hedging against a potential price drop.
Seven-day implied volatility rose from 53.5% to 56.5%, and the 30-day gauge increased from 56% to 57.5%, reflecting growing uncertainty.
Among Ethereum traders, these expectations are even stronger: the metrics jumped by 6% and 2.5% to 74% and 69.5%, respectively.
Sean Dawson, head of research at Derive.xyz, attributed this to heightened sensitivity to macroeconomic changes and speculation around policy after the inauguration.
Over the past 24 hours, open interest in bitcoin options rose to $237 million, indicating increased market activity.
Earlier, Standard Chartered said the inauguration remains a “sell the news” opportunity, with a target of $80,000 for the leading cryptocurrency.
Earlier, 10x noted the formation of a symmetrical triangle in bitcoin, indicating an impending breakout. The specialists did not forecast its direction.