Share this article
Crypto Options Market Starting to Have Material Impact on Spot Market: QCP Capital
The Singapore-based crypto fund wrote in a Telegram note that the newfound strength of the crypto options market prevented bitcoin from bottoming out below $40,000.
By Sam Reynolds
Updated May 11, 2023, 6:57 p.m. Published Jan 14, 2022, 7:23 a.m.
While a correlation between equities and crypto has become more apparent during the last year, Singapore’s QCP wrote that there is a limit to this correlation because of the increasing importance of the crypto options market.
- As the bitcoin and ether markets followed the bearish sentiment of the equities market as the week began, bitcoin and ether tumbled below $40,000 and $3,000, respectively.
- QCP wrote there was a bounce-back because of the number of strikes at the $40,000 mark for bitcoin, and the $3,000 mark for ether, held by the large holders known as whales.
- The fund noted there was a counterparty that was buying a large amount of downside risk reversals (where a trader buys the put and sells the call) who suddenly switched positions to take profit (where they sell the put and buy the call).
- With the volume of delta trading (simultaneously buying and selling options) on the strikes at $40,000 and $3,000, there was a creation of spot support at those levels, QCP wrote.
- QCP said one reason why bitcoin is facing some resistance at the $44,000 market is a whale began taking profit on his $42,000 January calls as bitcoin drifted towards $44,000.
- “We think option activity will increasingly dictate spot movements as the option market continues to grow,” the firm wrote.
Read more: Bitcoin’s Near 40% Slide Weighs on Crypto Stocks While Coinbase Outperforms
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Japan’s Higher Rates Puts Bitcoin in the Crosshairs of a Yen Carry Unwind
A stronger yen typically coincides with de-risking across macro portfolios, and that dynamic could tighten liquidity conditions that recently helped bitcoin rebound from November’s lows.
What to know:
- The Bank of Japan is expected to raise interest rates to 0.75% at its December meeting, the highest since 1995, affecting global markets including cryptocurrencies.
- A stronger yen could lead to de-risking in macro portfolios, impacting liquidity conditions that have supported bitcoin's recent recovery.
- Governor Kazuo Ueda indicated a high probability of a rate hike, with officials prepared for further tightening if their economic outlook supports it.
Top Stories
