Last week, significant events unfolded in the cryptocurrency markets, such as Bitcoin's record rise and the activation of altcoins. This article discusses the main trends in the options market as well as traders' strategies.
Overall Options Market Activity
Last week, Bitcoin reached a record high, prompting risky bets and increased options activity. Bitcoin options volume surged, accounting for about 60% of the overall volume, indicating a predominance of bullish positioning, while activity in put options also increased. Traders began to protect their positions through hedging, signaling a tempered optimism in the market.
Key Altcoins and Their Highlights
Altcoins such as Ethereum and Solana also demonstrated high trading options activity. Ethereum recorded a 4% rise, with traders actively utilizing call options strategies on its holdings. Solana, in turn, attracted significant interest among traders with options around $180, as speculation about a potential ETF launch for the cryptocurrency mounts.
Traders' Strategies this Week
Various strategies were observed, including short straddles aimed at dampening volatility after a sharp rise, and long straddles betting on expected significant price movements. Many traders also employed alternative hedging strategies to minimize risks.
The week ending June 1 showcased an evolving cryptocurrency options market, allowing traders to employ a diverse range of strategies. Options activity also broadened beyond Bitcoin to cover a wider array of altcoins.
