Bitcoin advocate Max Keiser has predicted that a new all-time high (ATH) may be on the horizon for the Bitcoin price. This prediction came as he noted the impact that Nasdaq’s filing to expand BlackRock IBIT’s options contracts could have on the market.
A New All-Time High In Play For Bitcoin
In an X post, Keiser stated that new all-time highs are in play for BTC now that the derivatives market has expanded by 40x. He went on to explain how the expansion of the options market for BlackRock’s Bitcoin ETF (IBIT) could impact the market.
The Bitcoin advocate noted that the 40x increase in the options contract size solves the problem that market makers face with size barriers. Notably, Keiser had previously predicted that BTC would experience a pullback when the market hit these size barriers, which could be one of the reasons for the recent market crash.
As CoinGape reported, Nasdaq has filed to increase options limits on BlackRock’s Bitcoin ETF to 1 million contracts. This suggests that the exchange expects institutional inflows that are beyond the current market capacity.
Market expert Jeff Park also commended the move, stating that the BlackRock Bitcoin ETF options market is finally getting the treatment it deserves. He added that institutional volume is now present. Park has previously noted that the 25,000 contract size was “discriminatorily small” given the rising volume. Back then, he mentioned that 400,000 contracts should be the bare minimum.
How The Increase In IBIT Options Contract Size Could Impact Price
Keiser indicated that expanding the IBIT options contract size could help support higher BTC prices. He alluded to an earlier commentary on how institutional traders and market makers had to build up their BTC holdings to provide liquidity and handle surges, which would pave the way for price increases.
Market expert Adam Livingston also explained the impact this move could have on Bitcoin’s price, calling it the biggest news of the week. He noted that when an ETF gets promoted into the mega-cap derivatives class, it unlocks second-order effects that retail investors never see.
This includes the fact that market makers can finally hedge size without constraints, which translates to tighter spreads, deeper order books, and more aggressive liquidity provision. Livingston further remarked that banks can run structured products on Bitcoin without blowing through risk caps, meaning that the flagship crypto becomes collateral for an entirely new tier of financial engineering.
Notably, this move comes just as JPMorgan plans to launch Bitcoin-backed structured notes that will track BlackRock IBIT’s performance. The expert added that volume sellers will be able to enter the market as the limit on IBIT options contracts expands, thereby suppressing short-term noise and amplifying long-term directional flows.
Source: https://coingape.com/max-keiser-says-new-bitcoin-ath-in-play-after-nasdaqs-ibit-options-filing/
