Traders speculating on Bitcoin options aim for a potential price of $300,000 as a new record high approaches.
Bitcoin bulls are fueling the fire, bettin' on prices skyrocketin' past that half-million mark! gaping call options expiring on June 27, with a striking price of $300,000, are second only to the $110,000 calls on Deribit. These high-flyin' options have garnered the most open interest in all expirations, showin' investors are putting their money where their mouth is.
Put Some Money on Bitcoin, Y'all!
Jeffrey Howard, head of North America at crypto brokerage firm Nonco, observations, "Options skew remains bullish across tenors, with OTM calls tradin' rich versus puts out to 1 year – hintin' at upside positioning." Bitcoin's currently hoverin' around $106,000, just a stone's throw from its recent all-time high.
Trump's Back, but Bitcoin Ain't Lookin' Back
Remember back when Trump was sworn in for his second term, and Bitcoin plummeted about 30%? Well, don't fret – the cryptocurrency's rebounded in recent weeks, as the tension ease worldwide, espeically between the US and its major trading partners. Nikolay Karpenko, a senior client relationship manager at B2C2, affectionately mentioned, "Market sentiment improved early in the week on the back of a surprise tariff détente between the US and China."
Up and Away, Baby!
Volatility has dropped recently as Bitcoin bounds within a tight range, but the "call skew has steepened notably as renewed demand for topside optionality accompanies the recent rally toward all-time highs," Ravi Doshi, co-head of markets at prime broker FalconX, shared. The market's warmin' up, with a jump in short-term options targeting specific price ranges, layin' the groundwork for a potential "gamma squeeze."
If traders keep snatchin' up call options, expect dealers to scramble for hedging, buyin' the underlying Bitcoin to minimize their exposure. As the action heats up, we could be lookin' at a wild ride towards new all-time highs, Greg Magadini, Amberdata's director of derivatives, slyly stated, "This is showin' us that the market positioning is heatin' up in anticipation of new ATHs, and once we reach uncharted price territory, there's no tellin' how high BTC can go."
Now, are you ready to join the crowd and catch this bull run? Keep an eye on the market, and good luck out there!
[5] - Institutional interest drives Bitcoin options market[3] - Bitcoin as a hedge against macroeconomic risks[2] - Increased retail participation in call options[4] -growing open interest of Bitcoin options on Deribit
- The Bitcoin options market is being driven by institutional interest, with a preference for call options and a bullish outlook on prices, suggesting a surge in investing.
- In the wake of increased retail participation in call options and a decreasing volatility, Bitcoin is positioning itself as a hedge against macroeconomic risks, especially in the context of improving market sentiments and trade tensions easing.
- As the open interest of Bitcoin options on Deribit continues to grow and traders aggressively buy call options, the market is showing signs of preparations for new all-time highs, with potential for significant growth in health, technology, finance, and business sectors.
