Crypto options flows tracked by derivatives platform PowerTrade suggest traders are positioning for a potential late‑2025 altcoin rally, with SOL, XRP and even governance/meme tokens like TRUMP drawing outsized bullish bets.
PowerTrade said August activity exceeded $1 billion in cumulative volume, with roughly 68% of trades concentrated in call options — a clear skew toward upside exposure rather than defensive hedging. Call options give holders the right to buy an asset at a preset price before expiry and are commonly used to express bullish views with defined risk.
Solana topped the list for aggressive positioning, with heavy call-buying into September and December expiries and many strikes set well above current market levels — a market signal that traders expect a potential breakout in the fourth quarter. XRP also showed unusually large block trades in December calls, implying traders are betting on possible regulatory clarity or positive ecosystem catalysts before year‑end.
Meme and retail favorites such as DOGE and PEPE drew mainly smaller, retail-driven flows, while tokens like WIF posted rising open interest — a sign that larger, possibly institutional players are quietly building positions in selected altcoins.
The platform highlighted growing institutional involvement via large block RFQs (request‑for‑quotes) tied to bitcoin and ether volatility, along with sizable bespoke altcoin trades combining hedges and directional bets. PowerTrade framed these moves against a backdrop of steady Fed policy and returning liquidity, saying the environment could be ripe for a strong altcoin season into year‑end.
PowerTrade remains a niche player compared with industry leader Deribit, but its specialization in options for smaller altcoins gives traders access to hedging and speculative tools not always available on larger exchanges — which can amplify price moves in less liquid tokens.
Risk note: Options are leveraged instruments and can amplify losses as well as gains. Flow data indicates sentiment, not guaranteed outcomes. Traders should do their own research and consider position sizing and risk management before acting.
Source: CoinDesk. Read the original coverage for full details.