Traders are using Bitcoin options to bet on the cryptocurrency staying within its recent trading range amid a sharp market downturn. The fourth-quarter slump has erased over $1 trillion from the digital asset market's value. Bitcoin, which dominates nearly 60% of the crypto market, fell as much as 4.4% to $88,135 on Friday.
Bitcoin options data reveals that market participants expect the leading cryptocurrency to remain stuck in its current price band following a severe fourth-quarter decline. This downturn has wiped out more than $1 trillion in value from the broader digital asset ecosystem.
On Friday, Bitcoin dropped as much as 4.4% to $88,135, slipping below the midpoint of the $80,000 to $100,000 range it has occupied over the past three weeks. As the largest token by market capitalization, Bitcoin represents almost 60% of the total crypto market value.
The positioning in options markets underscores a cautious stance among traders, who appear to be hunkering down in anticipation of prolonged subdued activity, often referred to as a 'crypto winter.' This comes after Bitcoin's recent volatility, with the asset failing to break out of its established trading corridor despite broader market influences.
Keywords associated with the event include Bitcoin, cryptocurrency, and regulatory aspects, highlighting ongoing concerns in the sector involving entities like BlackRock Inc. and potential White House influences under figures such as Donald John Trump.