Altcoin Options Trading Heats Up on PowerTrade as Crypto Market Volatility Intensifies

Trading activity in altcoin options is heating up on PowerTrade as crypto market volatility intensifies.

Crypto traders are increasingly using options contracts to hedge against risks or to speculate on quick price moves, especially as market volatility intensifies. According to data from digital asset trading platform PowerTrade, trading activity in altcoin options is heating up, particularly for those expiring in the short term.

As the broader financial markets reacted to geopolitical tensions, especially the ongoing U.S.-China trade and macroeconomic uncertainty, traders were seen buying puts in smaller batches with strike prices ranging from $104 to $121 for Solana’s native token, SOL.

SOL slid to a five-month low of $95 earlier in the week as the price of bitcoin (BTC) also dipped below $60,000. However, the token quickly rebounded to $115 by Thursday, highlighting the volatile nature of current trading conditions.

At the same time, traders were also seen opening up positions in Dogecoin (DOGE) options, specifically the short-dated ones expiring by April 13. Popular strike prices for DOGE call options included 14.5, 15.5, 17.5, and 18 cents.

Dogecoin, the meme cryptocurrency, dropped to as low as 13 cents earlier this week before rebounding to nearly 15.7 cents on Thursday. While it remains over 65% lower than its December high of 48 cents, traders appeared to be eager to place short-term speculative bets on the token, which is also used by traders to close out or roll over existing trades.

According to Bernd Sischka, head of institutional sales at PowerTrade, these short-dated options reflect momentum trading strategies that are likely influenced by social media buzz and rapid market developments.

“We are seeing a preference for short-dated expiries and directional bets drive altcoin options into the spotlight,” Sischka said.

He added that this shift in market behavior is also driven by traders using low-cost, high-risk options to quickly capitalize on price movements.

While the altcoin options segment is still much smaller than the dominant bitcoin and ether options markets led by Deribit, it’s nonetheless growing at a fast pace. PowerTrade’s platform is becoming a hotspot for traders seeking tailored exposure to less mainstream cryptocurrencies, especially as price swings and headline-driven volatility continue to influence trading sentiment.

The increased demand for altcoin options comes as traders are turning to more complex financial instruments to navigate an unpredictable landscape. With XRP, SOL, and DOGE proving to be the focal points in this new wave of activity, demand for strategic plays through options is likely to continue climbing as volatility remains high and uncertainty persists.