Bitcoin Maxi Says ATH Back On The Table After 40x Derivatives Surge
Overview
Recent developments in the Bitcoin derivatives market have led to speculation about the potential for a new all-time high for Bitcoin. Key changes, such as a significant increase in options contract limits by Nasdaq, coupled with strong buying activity from large holders, have caught the attention of market watchers.
Key Developments
Expansion of Options Limits
Nasdaq has filed to increase the options limit for BlackRock’s IBIT to a substantial new cap. This adjustment marks a dramatic increase from previous limits, expanding the number of contracts from 25,000 to 1 million. Market experts have noted that the previous cap was inadequate given the rising trading volume, describing it as “discriminatorily small.” The new limit could position IBIT within a larger derivatives category, potentially influencing how institutional investors approach Bitcoin exposure.
Impact on Market Makers and Banks
With the expanded options limit, market makers can now hedge larger positions without the constraints of the former size limits. This change is expected to lower trading spreads and enhance liquidity within the market. Reports indicate that banks will be able to create structured notes referencing IBIT without exceeding existing risk caps. Notably, JPMorgan is reportedly preparing Bitcoin-backed structured notes that would track BlackRock’s IBIT, which could result in a steady influx of institutional capital rather than sporadic investments.
Increased Accumulation by Large Holders
On-chain data from Glassnode reveals a shift in the behavior of Bitcoin holders. Those holding 10,000 BTC or more have transitioned to net accumulation, achieving a score indicating strong buying activity. Additionally, the group of holders with 1,000 to 10,000 BTC has also shown positive accumulation for the first time since September. Even retail holders with less than 1 BTC have demonstrated significant buying activity, marking their strongest accumulation since July.
Price Behavior and Market Sentiment
The recent price movements of Bitcoin support the narrative of increased buying interest. Bitcoin’s price fell to the low $80,000 range, which has previously served as a support level, before quickly rebounding above $90,000. This behavior suggests that traders see value in the lower price zone. Reports indicate that the average cost basis for U.S. spot Bitcoin ETFs is near $82,000, making the recent dip appealing to institutional investors.
Volatility and Market Risks
Despite the positive developments, there remains a cautionary outlook on market volatility. Max Keiser has noted that the limitations on hedging in the past contributed to market pullbacks, and some analysts warn that while the expanded options limit may facilitate smoother trading, it does not eliminate inherent market risks. Price fluctuations remain a possibility, and downside risks could emerge if trading flows slow or macroeconomic conditions change.
Impact on the Crypto Market
- The increase in options contract limits may attract more institutional investment in Bitcoin.
- Enhanced liquidity and reduced spreads could lead to a more stable trading environment.
- Active accumulation by large and retail holders signals growing confidence in Bitcoin’s value.
- Price behavior indicates potential support levels that traders are monitoring.
- Market volatility may persist despite structural improvements, necessitating caution among investors.
Updated: 11/28/2025, 9:20:28 PM
