Crypto Resurgence? Traders Bet on This Stock to Lead the Rally

According to CNBC, while the S&P 500 index has largely treaded water over the past five trading sessions, the cryptocurrency market is regaining momentum. Bitcoin rose on Tuesday (21st) to its highest level since mid-June. Options trading related to digital assets has also turned markedly bullish, with the strongest bullish bets concentrated on cryptocurrency exchange Coinbase (COIN-US).

Options flows in Coinbase, Robinhood, IBIT, and Strategy all indicate that the market is reassessing the potential for a crypto rebound. However, IBIT still shows a higher volume of call selling, reflecting that while investors are becoming more optimistic, they remain cautious about whether this rally can evolve into a more sustained recovery.

Coinbase Stock Surges as Options Flows Turn Bullish

Coinbase jumped 9.61% on Tuesday, closing at $175.85 per share, with intraday highs near $178. Earlier this month, the stock dipped below $150, but that level has been tested multiple times since early 2024 and held firm.

Alongside the price rebound, Coinbase’s options market saw a surge in bullish positioning. Call options traded over 114,000 contracts, far exceeding the less than 50,000 put contracts. The number of call buys was more than four times the number of put buys.

SpotGamma data shows that by Tuesday noon, Coinbase options premium volume exceeded $100 million, with around $80 million coming from call contracts. The most actively traded contract was the weekly Friday expiry call at a $190 strike price, meaning the stock would need to rise about 7.5% further for those positions to become profitable.

Robinhood Call Activity Heats Up

Another trading platform, Robinhood Markets (HOOD-US), also saw similar bullish options activity.

ThinkOrSwim data shows Robinhood’s total options volume reached about 170,000 contracts on Tuesday, with 125,000 being calls. The number of call buys was approximately six times the number of put buys, indicating traders are betting that a crypto market recovery could further boost trading volumes and operating performance at platforms.

Bitcoin ETF Shows Neutral-to-Bullish Sentiment

Options positioning in Bitcoin spot ETFs also reflects a cautiously optimistic investor outlook.

For iShares Bitcoin Trust ETF (IBIT-US), the number of call buys exceeded put buys by more than two times. However, overall call selling volume remained higher than buying, suggesting some traders may be selling calls to collect premiums. Market sentiment is overall neutral to bullish, but not yet in full-blown momentum-chasing mode.

Strategy Sees Increase in Bullish Bets

Another positive signal for crypto bulls comes from Strategy (MSTR-US), the Bitcoin reserve company led by Michael Saylor.

Traders bought twice as many Strategy calls as puts. The stock has declined over 75% in the past year, making it one of the main sources of pressure in the crypto market recently. Now, rising call demand suggests some investors are beginning to bet on a potential synchronized rebound in Bitcoin and related概念股.