PowerTrade’s Altcoin Options Market Sees Surge as Volatility Fuels Hedging and Speculation

With market volatility intensifying, altcoin options trading has picked up pace this week on PowerTrade’s platform, as traders dive into derivatives for both hedging and speculative strategies.

XRP options have seen a dramatic surge, surpassing $5 million in volume, primarily driven by short-dated expirations. According to PowerTrade, the activity is split between put options, with strike prices ranging from $1.80 to $1.98, and call options at strikes between $1.80 and $1.93.

“This balance of bullish and bearish positions suggests traders are preparing for significant short-term price movements, possibly due to regulatory changes or a potential breakout pattern,” said Bernd Sischka, Head of Institutional Sales at PowerTrade, in an interview with CoinDesk.

The uptick in two-way flow mirrors XRP’s volatile price action this week, with the asset falling to a five-month low of $1.61 before bouncing back to $2. A call option, reflecting optimism, contrasts with the bearish outlook of a put buyer seeking to profit from price declines.

Alongside XRP, Solana (SOL) options are experiencing hedging activity, with puts being purchased at strikes between $104 and $121. The token briefly dropped to $95 on Monday due to broader market concerns stemming from the U.S.-China trade conflict but has since climbed back to $115.

Despite macroeconomic jitters, Dogecoin (DOGE) has drawn traders looking for upside potential. The cryptocurrency dipped to 13 cents early in the week, only to recover to 15.7 cents. While still down 65% from its December high of 48 cents, Dogecoin options have been attracting a surge in speculative interest.

Calls at strikes of 14.5, 15.5, 17.5, and 18 cents, all expiring on April 13, are among the most popular, reflecting the speculative nature of current altcoin options activity.

“The flow we’re seeing suggests pure momentum trading, where traders are placing low-premium, short-term bets to capture fast price movements,” Sischka explained. “Short-dated expirations and directional plays are propelling altcoin options to the forefront.”

While altcoin options are seeing more interest, they remain far smaller than the bitcoin and ether options markets, where daily trading volumes reach into the millions of dollars, especially on platforms like Deribit.