Bitcoin surged to an all-time high near $95,000 as options trading debuted on Bitcoin ETFs, marking a significant milestone for the cryptocurrency market. The launch was spearheaded by BlackRock's Bitcoin ETF, IBIT, which saw over $2 billion in notional exposure on its first day, with optimistic traders heavily favoring call options over puts by a four-to-one margin. Experts like Douro Labs' Mike Cahill highlighted the bullish leverage reflected in the surge, signaling growing investor confidence. However, industry veterans like Custodia Bank founder Caitlin Long warned of the risks inherent in stacking derivatives, likening the dynamics to traditional Wall Street tactics that could jeopardize Bitcoin’s unique scarcity. While the accessibility of Bitcoin options opens new avenues for traders, it also raises concerns about market stability, reminiscent of past crises in both traditional finance and crypto. Despite these risks, Bitcoin’s upward momentum underscores strong demand as the cryptocurrency gains further legitimacy through institutional adoption.
