The Bitcoin options market is smaller than the traditional instruments market, but leveraged trading has contributed to the recent rise. The fourth quarter saw a 42% increase, which may increase further if key levels are maintained. $11.8 billion worth of options will expire on December 27, potentially pushing the price of Bitcoin above $100,000.
Call options predominate, with long positions worth $7.9 billion and short positions at $3.92 billion. Analysts predict that Bitcoin could face trouble if the price falls from current levels around $90,000 to around $75,000. Volatility may continue in December due to the election of Donald Trump and the pro-crypto lawmakers and senators in his administration.
Historically, Bitcoin has seen an average increase of 5.45% in December, but the price has also decreased four times out of five years.
