Vancouver is the latest city to join the discussions on adding Bitcoin to the government’s financial reserves. At a city council meeting on November 26th, Mayor Ken Sim submitted his notice of motion, where he plans to introduce his proposed Bitcoin bill on December 11th.

The city’s proposal is titled ” Preserving the city’s purchasing power through diversification of financial resources: Becoming a Bitcoin-friendly city. ” It aims to integrate Bitcoin into the city’s financial system and make Vancouver a “Bitcoin-friendly city,” using Bitcoin as a hedge against inflation and promoting economic development.

Vancouver Makes A Move Towards BTC Adoption

Vancouver Mayor Ken Sim is taking the necessary steps to prepare the city for the blockchain. As a Bitcoin supporter, Sim is pushing for widespread adoption to hedge against inflation and promote economic development. In a November 27th meeting, Mayor Sim filed a motion of notice detailing his plan to present the proposal to adopt Bitcoin on December 11th.

🇨🇦VANCOUVER, CANADA, MAYOR PUSHES FOR BITCOIN AS CITY RESERVE ASSET

Vancouver Mayor Ken Sim announced plans to make the city “Bitcoin-friendly,” proposing Bitcoin as part of its financial diversification strategy.

A formal motion, set for December, could see the city adopt… pic.twitter.com/TI2rlSgYpX

— Mario Nawfal (@MarioNawfal) November 27, 2024

Under the proposal, Vancouver will transform into a “Bitcoin City” and authorize the city government to diversify its resources to include Bitcoin. If the council approves, residents of Canada’s third-largest city can purchase Bitcoin.

However, it isn’t clear in the proposal if Sim also authorizes setting up a Bitcoin strategic reserve, similar to the one being pushed by US senator, Cynthia Lummis.

Bitcoin market cap currently at $1.88 trillion. Chart: TradingView.com

Mayor Sim And His Campaign For Bitcoin

Sim is one of the country’s most vocal supporters of Bitcoin. During the campaign, Sim’s party announced it would accept cryptocurrency donations. He explained that their commitment to blockchain technology demonstrates their plan to accept crypto as donations. He also teased the electorate that he will push for crypto-related policies if he wins.

Vancouver Mayor Ken Sim. Image: Chain Debrief

Sim became Vancouver’s mayor in October 2022. During his tenure as city mayor, he rarely gave speeches or talks on Bitcoin and cryptocurrencies. Interestingly, a book titled “The Bitcoin Standard” by Saifedan Ammous was seen in the mayor’s office during his interview with Global News on November 25th. Many observers pointed to this item in his office as evidence of the mayor’s interest in crypto.

Push For BTC Mainstream Adoption Intensifies

Today, Bitcoin continues to surge in price thanks to a growing mainstream adoption. Sim’s move to integrate Bitcoin into Vancouver’s financial system is just one of the many proposals reported recently. According to Jeff Booth, a blockchain author, Mayor Sim’s proposal aims to promote the adoption of Bitcoin as a reserve asset.

Aside from Vancouver, a few states and governments are working overtime to fast-track Bitcoin’s mainstream adoption. For example, the state of Florida plans to tap a portion of its pension funds and use it to buy crypto. Pennsylvania is also planning to set up a Bitcoin reserve. Then, there’s the city of Detroit, which teases a plan to accept Bitcoin as a payment option.

Featured image from DALL-E, chart from TradingView

Today, over $10 billion worth of Bitcoin (BTC) and Ethereum (ETH) options are due to expire.

Market watchers are particularly attentive to this event due to its potential to influence short-term trends through the volume of contracts and their notional value. Examining the put-to-call ratios and maximum pain points can provide insights into traders’ expectations and possible market directions.

Bitcoin and Ethereum Options Expiring Today

The notional value of today’s expiring BTC options is $9.47 billion. According to Deribit’s data, these 98,309 expiring Bitcoin options have a put-to-call ratio of 0.84. This ratio suggests a prevalence of purchase options (calls) over sales options (puts).

The data also reveals that the maximum pain point for these expiring options is $80,000. In crypto options trading, the maximum pain point is the price at which most contracts expire worthless. Here, the asset will cause the greatest number of holders’ financial losses.

In addition to Bitcoin options, 412,116 Ethereum options contracts are set to expire today. These expiring options have a notional value of $1.47 billion and a put-to-call ratio of 0.75. The maximum pain point is $2,900.

The current market prices for Bitcoin and Ethereum are above their respective maximum pain points. BTC is trading at $96,353 while ETH sits at $3,573. This suggests that if the options were to expire at these levels, it would generally signify losses for options holders.

The outcome for options traders can vary significantly depending on the specific strike prices and positions they hold. To assess potential gains or losses at expiration accurately, traders must consider their entire options position, along with current market conditions.

Insights on Today’s Expiring BTC and ETH Options

Analysts at options trading tool provider Greeks.live reveal an interesting investor outlook that shows comprehensive evaluation is essential before drawing conclusions.

“We got an 11% pullback on BTC and people are saying the end is imminent. It was less than 10 days ago when the same people were asking for a pullback to buy,” they wrote.

Jeff Liang, CEO and co-founder of Greeks.live expresses optimism, saying that he is prepared to hold until the options expire at 8:00 UTC, Friday.

“Although the spread is significant, the offer implied volatility is on par with recent 1-month historical volatility, so it’s not overpriced. A 5% spot price increase can offset the spread. I’m prepared to hold until expiration. I bought a batch of call options last night, and the market has made some moves this morning,” Liang said.

Meanwhile, crypto markets remain subtly optimistic. In a statement shared with BeInCrypto, Bybit said the optimism could be attributed to hopeful investors’ expectation of a more crypto-friendly SEC Chair after Gary Gensler’s resignation.

Against this backdrop, Bybit also commented on the current market outlook, citing a correction in Bitcoin price and that expiring ETH options signal moderated bullish sentiment.

“BTC’s ebbing from the $100,000 mark has flattened the ATM volatility term structure, with short-tenor options dipping below 60%. This mirrors a pattern observed since the US election. Lower realized volatility explains the drop. While open interest in calls and puts remains unchanged, demands for short-term options this week have stagnated. ETH options show slightly more bullish sentiment than BTC options. Markets have recalibrated after the post-election high, but call options remain in the lead in both trading volumes and open interests,” Bybit added.

ATM IV refers to the implied volatility of an option contract whose strike price is equal to the current market price of the underlying asset. Analysts and traders often use this specific type of IV (implied volatility) to gauge market sentiment and volatility expectations for the underlying security.

Traders are therefore advised to remain cautious, as historically, options expiration often leads to short-term instability in the market. The weekend will also be crucial as it is often characterized by high volatility due to low trading volumes.

Ken Sim, the mayor of Vancouver, has proposed exploring Bitcoin as part of the city’s financial strategy. He suggested that a Bitcoin reserve would help the city diversify its financial resources. 

The mayor announced plans to formally introduce a motion for this Bitcoin reserve on Dec. 11. 

More States are Inclining Towards a National Bitcoin Reserve

According to the mayor, Vancouver aims to become a Bitcoin-friendly city. The motion will focus on assessing whether Bitcoin could serve as a hedge against economic instability. 

Sim’s political group, A Better City, previously caught the crypto community’s attention in April 2022 by accepting cryptocurrency donations.

“Vancouver is officially the most Bitcoin-friendly city in North America. Biggest Bitcoin monthly meetups, most BTC merchants per capita, and now, building a Bitcoin reserve,” Canadian crypto entrepreneur Julian Figueroa wrote on X (formerly Twitter).

Meanwhile, Bitcoin adoption at the government level continues to grow. El Salvador led the way in 2021 by making Bitcoin legal tender. According to Trading Economics, the country’s gross domestic product (GDP) rose from approximately $29 billion in 2021 to over $34 billion in 2023.

However, global institutions remain cautious about Bitcoin’s role in national economies. In October, the International Monetary Fund (IMF) called on El Salvador to enhance oversight of Bitcoin transactions.

In the US, conversations around adopting Bitcoin at a federal level are intensifying. Senator Cynthia Lummis has championed the idea of a strategic Bitcoin reserve, proposing legislation to formalize the concept. 

Earlier this month, Lummis proposed that the upcoming government sell a portion of Federal Resreve’s gold to increase its Bitcoin holdings. At the same time, Pennsylvania introduced a bill to allocate 10% of state funds to BTC, aiming to combat inflation and diversify investments.

Most recently, investment management firm VanEck also joined the Bitcoin Reserve campaign. The company is actively endorsing BTC’s adoption as a state or national reserve asset. VanECK’s Bitcoin ETF HODL currently holds a net asset of $1.29 billion. 

Overall, Vancouver’s exploration of Bitcoin aligns with a broader trend of governments and institutions considering the cryptocurrency as part of their financial frameworks.