Crypto Market Sees Sustained Rally as Traders Bet Big on Coinbase Options

After nearly a year of frustration for crypto bulls, the market is showing signs of life. While the S&P 500 has traded in a narrow range for five straight sessions, bitcoin and stocks tied to it are moving with purpose, and options traders are positioning for more upside ahead.

The renewed interest comes after Tuesday's rally, which saw Coinbase shares jump roughly 11% to around $178. This move above the $150 level is a technically significant development for chart-watchers and options traders alike.

Options flow has turned sharply bullish, with more than 114,000 call contracts changing hands in Coinbase compared to just under 50,000 puts. The ratio shows traders overwhelmingly favored bets on higher prices, with more than four times as many calls being bought outright as puts.

The bullish positioning was not limited to Coinbase. Robinhood Markets saw roughly 170,000 total options contracts trade hands, with 125,000 of those being calls. Traders bought six times as many calls as they bought puts in the brokerage stock.

For the rally in Coinbase and Robinhood to hold, bitcoin itself likely needs to keep climbing. Options activity around the iShares Bitcoin Trust ETF offers some encouragement on that front, with more than twice as many calls being bought than puts in the fund.