Crypto Traders Bet on Year-End Altcoin Rally with SOL, XRP, and TRUMP Leading the Charge
Market Signals Point to Potential “Monster Altseason” as Options Trading Reveals Bullish Sentiment
In a significant shift that could reshape the cryptocurrency landscape heading into 2023, traders are increasingly placing strategic bets on alternative cryptocurrencies to deliver substantial gains by year-end. According to recent data from cryptocurrency options and derivatives platform PowerTrade, tokens like Solana (SOL), Ripple (XRP), and the politically-themed TRUMP are positioned to lead what many anticipate will be a robust altcoin season in the final quarter of 2022.
“Traders were placing bets for altcoin season running into year-end with strong upside call activity for end-of-December expirations in AEVO, AR, DOGE, ENA, HYPE, LINK, MOG, PAXG, SOL, TIA, TRUMP and ZRO,” Bernd Sischka, Co-Founder and Chief Commercial Officer at PowerTrade, told CoinDesk while explaining August’s market flows. This trend represents a notable shift in investor strategy, as market participants appear to be looking beyond the traditional dominance of Bitcoin and Ethereum to find value in a broader range of digital assets.
Options Trading Volume Signals Strong Bullish Sentiment in Crypto Markets
PowerTrade’s August performance underscores this growing optimism, with the platform recording an impressive cumulative trading volume exceeding $1 billion. Particularly telling is that call options constituted approximately 68% of total trades—a clear indication that investors are prioritizing upside potential rather than defensive hedging strategies. For those unfamiliar with options trading, a call option provides the holder the right, though not the obligation, to purchase an underlying asset at a predetermined price before a specific expiration date, essentially representing a bullish position on the market.
This heavily skewed ratio of calls to puts suggests market participants are positioning themselves for price appreciation across multiple cryptocurrency assets, moving beyond merely protecting their existing holdings. The substantial volume demonstrates that both retail and institutional traders are increasingly comfortable making directional bets in the cryptocurrency options market, a relatively sophisticated trading venue that continues to mature rapidly within the digital asset ecosystem.
Solana, XRP, and TRUMP Options Reveal Specific Market Expectations
Diving deeper into specific cryptocurrencies, Solana has emerged as a particular favorite among options traders. The platform observed substantial call buying activity for both September and December expirations, with strike prices set ambitiously above current market levels—suggesting traders anticipate a significant price breakout for SOL in the final quarter of 2022. This confidence in Solana comes despite the blockchain’s periodic performance issues earlier in the year, indicating that market participants believe in its long-term technical fundamentals and growing ecosystem.
Meanwhile, XRP options trading revealed another interesting pattern, with unusually large block trades occurring specifically in December expiry calls. This activity potentially signals growing optimism surrounding Ripple’s ongoing regulatory challenges, with traders possibly anticipating favorable developments or regulatory clarity in the coming months. In perhaps the most unexpected trend, PowerTrade reported substantial interest in TRUMP options, with traders executing massive call spreads in apparent anticipation of heightened volatility—likely connected to the upcoming U.S. midterm elections and continued speculation about the 2024 presidential race.
Meme Coins and Institutional Participation Show Market Breadth
The meme coin sector continues to attract significant attention, primarily from retail investors focusing on popular tokens like Dogecoin (DOGE) and Pepe (PEPE). However, PowerTrade’s data reveals an interesting development with tokens like WIF experiencing increasing open interest, which suggests institutional investors are quietly building substantial positions. This pattern indicates that sophisticated market participants are gradually expanding their cryptocurrency portfolios beyond Bitcoin and Ethereum to include more established altcoins, though they appear to be approaching the meme coin phenomenon with greater caution than retail traders.
Institutional involvement in cryptocurrency options has grown more sophisticated, with PowerTrade noting increased engagement in block RFQs (request-for-quotes) specifically targeting Bitcoin and Ethereum volatility. Additionally, these larger players are executing sizable altcoin trades that blend both hedging strategies and speculative positions. “With Fed policy steady and liquidity returning, stars are aligning for a monster altseason end of year,” PowerTrade stated in their analysis, highlighting the macroeconomic factors potentially supporting this optimistic outlook. The U.S. Federal Reserve’s more predictable monetary policy stance, combined with improving market liquidity conditions, appears to be creating a favorable environment for risk assets, particularly in the cryptocurrency sector.
PowerTrade Carves Niche in Growing Crypto Options Market
While PowerTrade’s overall trading volume remains considerably smaller compared to industry leader Deribit, the platform has successfully differentiated itself by offering options contracts tied to smaller altcoins—an area largely ignored by the major exchanges. This strategic specialization provides traders with unique opportunities to hedge exposure and capitalize on price movements in these more volatile, less widely covered tokens, addressing a market need not typically served by larger platforms.
This growing interest in altcoin options trading reflects the broader maturation of the cryptocurrency market, as participants increasingly utilize sophisticated financial instruments to express market views and manage risk. The trend also highlights how the cryptocurrency ecosystem continues to evolve beyond simple spot trading toward more complex, derivatives-based strategies previously only common in traditional finance. As market infrastructure improves and institutional participation increases, we may witness further development of these specialized trading venues that cater to specific segments of the rapidly diversifying cryptocurrency landscape.
As 2022 enters its final months, these options market signals suggest cryptocurrency investors should closely monitor altcoin performance, particularly among the tokens attracting significant options activity. Whether the anticipated “monster altseason” materializes remains to be seen, but the positioning of market participants clearly indicates growing confidence in the broader cryptocurrency market beyond just Bitcoin and Ethereum.
