As Donald Trump prepares for his second inauguration, the Bitcoin derivatives market signals increased expectations for volatility. This event could significantly impact cryptocurrency markets.
Anticipating Cryptocurrency Market Volatility
According to data from Derive.xyz, Bitcoin put options now account for 40% of all open interest, doubling from 20%. This suggests traders are hedging against potential risks. 'Traders are positioning for increased volatility,' said Sean Dawson, Head of Research at Derive.xyz. 'The rise in Bitcoin’s options implied volatility reflects market uncertainty as we approach this significant political event.'
Analyzing Bitcoin Derivatives Activity
The past 24 hours saw Bitcoin options open interest reach $237 million, with calls comprising 38% and puts 37.3%. Bitcoin is currently trading at $96,714, reflecting a cautious optimism in the spot market.
Forecasts for the Cryptocurrency Market in 2025
Despite the short-term volatility, long-term predictions remain positive. According to HashKey Group, 2025 could be pivotal for the cryptocurrency market: Bitcoin is predicted to reach $300,000, Ethereum $8,000, and the total crypto market cap could triple to $10 trillion. New ETFs and the establishment of a Bitcoin strategic reserve are also expected.
Potential policy changes under the Trump administration create an opportunity for significant market swings, though overall expectations are positive.
