How circumspectly bullish Bitcoin traders use options to retain exposure to the cryptocurrency

<p>Bitcoin (BTC) traders appear to be unsure about their next move, as evidenced by the price bouncing between $58,400 and $63,400 during the last 14 days. While there are some bad indications coming from the US regulatory front, the fact that Bitcoin exchange-traded funds (ETFs) now manage more than $1.2 billion in assets has also increased investors' optimism.</p> <p>Coinbase's bitcoin pricing in USD</p> <p>According to a research published Nov. 5 by CryptoQuant, whales have responsible for the majority of selling pressure in recent days. The on-chain monitoring resource focused on the "exchange whale ratio" — the percentage of inflows from the largest wallets — and observed a significant increase from mid-October to today.</p> <p>Additionally, on Nov. 1, the US Treasury Department encouraged Congress to act swiftly to establish legislation that will regulate payment stablecoin issuers similarly to banks in the United States. In practise, the paper advises that stablecoins be issued exclusively by "insured depository institutions."</p> <p>Nonetheless, institutional investors added $2 billion in Bitcoin via mutual funds in October. According to the CoinShares flow report for October 31, the ProShares Bitcoin Strategy ETF, which formally launched on Oct. 19, accounted for $1.2 billion in inflow.</p> <p>Options enable traders to wager on positive and bearish market movements</p> <p>Contrary to popular misconception, derivatives markets were not created for the purpose of gambling or undue leverage. Derivatives trading has existed for more than five decades, and institutional investors have shifted their focus — and volume — to cryptocurrency in recent years.</p> <p>On July 7, Bloomberg reported on a $4.8 million options trading profit made by the husband of Nancy Pelosi, the Speaker of the United States House of Representatives. Paul Pelosi disclosed in a July 2 financial disclosure that he exercised call options to acquire 4,000 shares of Alphabet, Google's parent company, at a $1,200 strike price.</p> <p