TLDR
- Nasdaq filed to raise IBIT options contract limits to 1 million from 25,000.
- Max Keiser says expanded IBIT options clear the size hurdle for institutions.
- Bitcoin open interest dropped 1.3M BTC in 30 days, hitting $114 billion.
- Analyst says BTC could rally if price returns to $90K-$96K range.
Bitcoin advocate Max Keiser says a new all-time high for the cryptocurrency is now possible, following Nasdaq’s move to expand options contracts for BlackRock’s Bitcoin ETF (IBIT). The 40x increase in contract limits is expected to attract more institutional investors, improve market liquidity, and support upward price momentum. As traditional finance enters deeper into Bitcoin markets, analysts suggest the stage may be set for a renewed bullish trend.
Expansion of IBIT Options Market
Nasdaq has filed to raise the maximum number of options contracts for BlackRock’s Bitcoin ETF (IBIT) to 1 million. The current cap of 25,000 contracts has been criticized by market analysts as too small for rising institutional demand.
Bitcoin supporter Max Keiser stated that this expansion means a new all-time high is now “in play.” He noted that the previous contract limits were a barrier for market makers, which led to liquidity issues. Keiser had warned earlier that such barriers might contribute to price pullbacks in the market.
Institutional Demand and Market Liquidity
Market analyst Jeff Park backed the filing, saying the options market is finally receiving the structure it needs. He called the current 25,000 limit “discriminatorily small” and added that institutional demand has grown past these thresholds.
Options trading enables market participants to hedge large positions more efficiently. Analyst Adam Livingston noted that increasing IBIT options capacity allows tighter spreads and deeper liquidity. He added that this move lets banks create Bitcoin-based financial products while staying within risk limits.
Livingston described the filing as the “biggest news of the week,” adding that it enables a class of volume sellers to join the market. These participants are expected to stabilize trading activity and drive longer-term trends.
Declining Bitcoin Open Interest May Indicate Bottom
While the options market expands, open interest in Bitcoin futures has fallen sharply. Data from CryptoQuant showed a drop of around 1.3 million BTC in open interest over the last 30 days. With Bitcoin currently trading at $87,500, this figure represents around $114 billion.
The analyst “Darkfost” noted that the drop mirrors what happened in the 2022 bear market. They said that such a sharp decline helps clean up the market by reducing risky positions. This may create conditions for a more stable rally.
Traders are reportedly stepping away from leveraged positions to reduce exposure. As a result, analysts believe this could support price stabilization and renewed buying activity in the weeks ahead.
Analysts Watch Key Price Levels
Crypto analyst Michaël Van de Poppe said the coming week could decide whether Bitcoin begins a new upward phase. He mentioned that if Bitcoin can move into the $90,000 to $96,000 range, the chance of reaching a new ATH will grow.
He noted on X that “fear and panic are max during the past days” and such periods often offer opportunity. This view aligns with Keiser’s suggestion that the market is setting up for a potential new high, especially as institutional tools expand.
JPMorgan is also preparing to launch Bitcoin-backed structured notes that will track the performance of BlackRock’s IBIT. Analysts see this as another sign that traditional finance is preparing for larger exposure to Bitcoin-linked products.
