First Mover Americas: The Addition of Options Trading to Bitcoin ETFs Is a Major Advancement.

Crypto Market Update for November 19, 2024

This update is part of First Mover, CoinDesk’s daily newsletter that provides a comprehensive view of the latest developments in the cryptocurrency markets. Subscribe for daily insights.

Latest Prices

• CoinDesk 20 Index: 2,975.88 (+1.3%)
• Bitcoin (BTC): $92,456.36 (+2.06%)
• Ether (ETH): $3,144.77 (+2.37%)
• S&P 500: 5,893.62 (+0.39%)
• Gold: $2,636.70 (+0.85%)
• Nikkei 225: 38,414.43 (+0.51%)

Key Developments

Bitcoin (BTC) is hovering near $92,000, just shy of its all-time highs, ahead of Tuesday’s U.S. trading session. Over the past 24 hours, BTC has gained 2%, outperforming the CoinDesk 20 Index, which rose by 1.1%. Among the major altcoins, Chainlink (LINK), Hedera (HBAR), and Uniswap (UNI) are seeing the largest gains, as traders look ahead to potential institutional support and fewer regulatory concerns under a Trump presidency. Crypto hedge fund QCP forecasts that Bitcoin could approach $100,000 in the near future, with altcoins poised to benefit from this rally. Still, caution is warranted, with market experts like Augustine Fan, head of insights at SOFA, warning of a possible “blow-off top” — a sharp price correction following a steep rally.

In another major development, Bitcoin ETF options trading in the U.S. is set to commence today. BlackRock’s iShares Bitcoin Trust (IBIT) ETF has passed its final regulatory review, paving the way for more institutional investors to get involved in Bitcoin. According to 10x Research, this development represents a “monumental shift” and could attract substantial trading volumes, triggering sharp price movements for Bitcoin. For instance, MicroStrategy (MSTR), the company with the largest corporate Bitcoin treasury, has seen a surge in options activity. MSTR’s options open interest now surpasses the company’s market cap, underscoring the significant impact options trading can have. A similar surge in Bitcoin options could further fuel the price rally, particularly as Bitcoin’s limited supply creates a unique market dynamic.

Bitcoin mining economics have also improved in the first half of November, according to JPMorgan’s latest report. The hashprice, a key indicator of mining profitability, increased by nearly 30% in the first two weeks of the month as Bitcoin’s price surged to new highs. This rise in profitability has added approximately $8 billion to the market value of the 14 U.S.-listed miners tracked by JPMorgan. These miners now represent roughly 28% of the global Bitcoin network’s hashrate, a record high.

Chart of the Day

The chart below highlights the daily active addresses on major blockchains, showing Solana’s significant lead over its competitors. This data further supports the case for Solana’s potential to outperform other blockchain platforms in the near future.

Source: Artemis