Record Retail Options and Geopolitical Shocks Threaten Markets This Week

Crypto markets are bracing for an unusually turbulent week, with record retail options activity colliding with escalating geopolitical risks.

While the Bitcoin price steadied near $95,100 on Sunday, suggesting a market devoid of volatility as the pioneer crypto consolidates at thin levels, eyes remain peeled to the US-EU trade tensions, a looming Supreme Court ruling, and surging retail speculation converge.

High-Risk Week Ahead: Crypto, Stocks, and Metals in the Crosshairs

Retail traders are exerting unprecedented influence over market forces, with reports showing that retail participation in options markets now accounts for 21.7% of total volume, up from 10.7% in 2022.

Daily retail call volume has surged to 8.2 million contracts, with puts hitting 5.4 million, the second-highest on record.

Retail Options Trading Share. Source: Kobeissi Letter on X

Bitcoin pioneer Max Keiser describes this frenzy as a market “casino gulag,” referencing a market dominated by speculation, leverage, and short-term bets, with participants trapped in a high-risk gambling environment.

Casino Gulag