Transcript
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Foreign.
Jen Senassi (0:07)
We all want to believe in something. In Chinese, belief also means trust. We want to trust our systems and each other so we can build a future beyond what we know. Join us at Consensus Hong Kong, where belief becomes real.
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Hello and welcome to Markets Daily, hosted by me, Jen Senassi. On this show, we navigate the currents shaping the crypto markets, providing insights against the broader financial landscape. So whether you're actively trading or just fascinated by the volatility that is the crypto markets, this show is your compass to understanding what's happened, where we are, and where we're going. Bitcoin is back above $100,000 this morning after a short period of retreat since the new year. The largest cryptocurrency by market cap is in the green. And trends indicate expectations for prices to reach record highs following the inauguration of President elect Donald Trump on January 20th. Now, according to Amber data over the weekend, a trader on crypto exchange Deribit spent more than $6 million purchasing the $100,000 strike call options set to expire on March 28th. This means that someone with deep pockets has serious conviction on the price going even higher. Traders are also net buyers at the $120,000 strike price, which tells us that there is anticipation of a rally that could push prices above that level. The $120,000 call is the most popular option on Deribit. Now, here's a little refresher for you. A call option gives the buyer the right to buy the underlying asset at a specific price later in time. Call buyers are implicitly bullish on the market and are looking to make asymmetric gains from an expected price rally. Today we're going to discuss what's driving this call and what it signals for the broader crypto market. Now, let's level set here. These kinds of trades don't guarantee that prices are going to hit any particular level. But they suggest that big investors are speculating on something big. A seismic shift in market dynamics that could push Bitcoin to new highs. Now, Donald Trump is returning to the White House, and there are expectations that his administration could ignore pro crypto policies and regulations. Amber data set on X, quote, this trade anticipates that new highs for bitcoin will be broken just a few months after Trump officially takes office. And quote, there's a reason that the crypto market is paying such close attention to Trump's inauguration. For starters, you'll remember his campaign hinted at deregulation and policies that could make life easier for crypto companies. And I have to say it is too early to know what his administration's actual stance will be because but even the possibility of a pro crypto environment has sparked major bullish sentiment. Regulated cryptocurrency index providers CF Benchmarks said in an annual report that a restructured SEC under pro cryptocurrency leadership could reduce enforcement risks and foster innovation. The report added that the changes, coupled with streamlined compliance requirements, could enhance investor confidence. So what does this mean for investors now? Invest it is possible we could see new all time highs on the horizon, but there are some things to consider. First, don't let the headline numbers fool you. New all time highs sounds very exciting, but markets are unpredictable. Instead of getting caught up in the hype, focus on your long term strategy. Second, keep an eye on key developments from Trump's administration. If we see concrete pro crypto policies that could provide real risk lasting support. And finally, make sure you're managing your risk and not putting in more than you can afford to lose. That is a wrap for Markets Daily today. Thank you for watching. Thank you for listening. If you enjoyed this podcast, subscribe to the Coindesk Podcast Network that is available on all podcast platforms. And if you prefer to watch us, we are on YouTube. Hit subscribe. Give us a thumbs up. Thanks again for coming on this journey with me and we'll see you tomorrow.