Bitcoin hit a record high above $109,000, leading to increased volatility in the market. Realized volatility, the historical price fluctuations of bitcoin, reached its highest level since the yen carry trade unwind in August. Implied volatility, which measures the market's expectation for future price fluctuations, also hit a high. Traders are chasing options, particularly calls, as risk reversals show calls are trading at a premium relative to puts. Short-duration calls are priced higher than longer-duration ones, indicating strong short-term bullish sentiment. Open interest in options has increased significantly, reflecting heightened speculative activity. Traders are also anticipating a price gain following President-elect Donald Trump's potential announcement of a strategic bitcoin reserve. The market is optimistic about further gains this year due to speculation about a strategic crypto reserve and potential deregulation.



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