Daily Crypto Signals: Bitcoin Bulls Face $112K Options Hurdle, Ethereum Eyes $5K Goal
Bitcoin's monthly options expiry worth $22.6 billion favors bullish positions as long as BTC holds above $112,000, while Ethereum maintains
Quick overview
- Bitcoin's monthly options expiry worth $22.6 billion favors bullish positions if BTC remains above $112,000.
- The CFTC has initiated a program allowing tokenized assets to be used as collateral in futures markets, enhancing liquidity.
- Ethereum shows strong institutional support, with futures open interest at a record high, despite declining retail participation.
- Analysts suggest Ethereum must surpass $4,580 to reach a year-end target of $5,000, with current support at $4,100.
Bitcoin’s BTC/USD monthly options expiry worth $22.6 billion favors bullish positions as long as BTC holds above $112,000, while Ethereum ETH/USD maintains institutional strength despite waning retail participation. Key regulatory developments include CFTC initiatives for stablecoin collateral and uncertainty over the agency’s next leadership appointment.
Crypto Market Developments
This week, there are big changes happening in the world of cryptocurrencies on many fronts. Regulatory uncertainty has become a major issue. Reports say that President Trump is looking at more than just Brian Quintenz as a candidate for CFTC Chair. The list now includes Josh Sterling, the former head of the CFTC division; Mike Selig, the SEC’s general counsel; and Tyler Williams, the Treasury Secretary’s counselor. This makes it unclear what the agency’s future plans are.
The CFTC has also started a new program that lets tokenized assets, like stablecoins, be used as collateral in futures markets. Acting Chair Caroline Pham said, “Tokenized markets are here, and they are the future.” The move is anticipated to cut costs and make markets more liquid around the world. This new initiative builds on the agency’s Crypto CEO Forum and is in line with the President’s Working Group’s suggestions for digital assets.
Vitalik Buterin, one of the co-founders of Ethereum, made a strong case for open-source infrastructure in healthcare, finance, and government. This added to the discussion over regulations. Buterin said that closed systems lead to misuse and monopolies, and he said, “The civilizations that gained the most from new waves of technology are not the ones that used the technology, but the ones that made it.”
More Bullish Moves Ahead if BTC Holds Above $112,000
The expiration of Bitcoin’s September monthly options is a key moment for the cryptocurrency, as $22.6 billion in contracts are slated to expire on Friday. The posture heavily supports positive outcomes, with call options worth $12.6 billion more than put options worth about $10 billion. But this bullish trend depends on Bitcoin staying above the important $112,000 barrier till Friday at 8:00 AM UTC.
Market dynamics show that 81% of put options at Deribit are set at $110,000 or less, which means that only $1.4 billion is still actively in play. On the other hand, a lot of call contracts are aimed at very high levels, with $6.6 billion in open interest at $120,000 and beyond. The delta skew demonstrates that institutional investors are still worried about downside risks, even though the overall positioning is optimistic. Important macroeconomic reports, like as US GDP figures and jobless claims, could change people’s minds before the expiry ends.
Can Ethereum Price Touch $5,000 By the End of this Year?
Ethereum had amazing relative strength in the third quarter of 2024, gaining 75% against Bitcoin. However, the trend has slowed down a bit in September. The altcoin is still very appealing to institutions. The open interest in futures contracts reached 43.3%, the fourth-highest level ever, and the volume of perpetual futures contracts reached an all-time high of 67%. This is the biggest shift in trading activity toward Ethereum in history, which shows that institutions are becoming more confident in the asset.
Ethereum has tremendous institutional support, but there is a significant difference in how many people are participating in retail. The value of US spot ETH ETFs has gone up from $10.32 billion in June to $27.48 billion in September. Strategic Ethereum Reserves have also grown their holdings by 121% since July 1. Retail traders on Binance, on the other hand, have kept up net selling pressure for the past month, and the spot taker Cumulative Volume Delta has been sell-dominant since late July. Analysts say that Ethereum needs to get back over $4,580 in order to break out and reach the $5,000 year-end target. Right now, support is around $4,100.
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