Traders of bitcoin options are placing bets that the top cryptocurrency will surpass $75,000 this month. This bullish bet is made in the context of rising interest and optimism about Bitcoin’s market potential, which is being driven by encouraging economic statistics and expanding institutional adoption.
According to Bloomberg, data from significant options exchanges has revealed a sharp increase in bullish wagers on Bitcoin in recent weeks. Traders are indicating that they think the price of Bitcoin may surpass this mark in less than a month by purchasing call options with strike prices of $75,000 or more. This uptick in optimism indicates that market participants are becoming more confident in Bitcoin’s short-term prospects.
In terms of open interest, or the quantity of outstanding contracts, Bitcoin call options with a strike price of $75,000 for all expirations have the largest amount. That is followed by strike prices of $100,000 and $80,000, based on data compiled by the biggest cryptocurrency options market, Deribit. Call options provide purchasers the right, at a predefined price and time, to purchase the underlying asset.
After breaking a five-day winning run, Bitcoin hit a high of $71,756 this week and is now trading at $70,890, down 0.65%. The biggest cryptocurrency dropped from a record high of $73,798 that it had attained on March 14 due to a decline in interest in the newly authorised Bitcoin ETFs.
Investor interest has returned, and traders are aiming for a new high as they anticipate that rate cuts from the Federal Reserve would increase demand for riskier assets.
The most open interest was observed in the call options that expire on June 28 at the $75,000 strike price; the highest open interest was observed in the call options that expire on July 26 and December 27 at around $100,000.
