Bitcoin Rebound Has Crypto Options Traders Anticipating $100K
The number of active bitcoin call contracts is significantly higher than puts, indicating bullish market sentiment.
Bitcoin rebound spurs demand for out-of-the-money calls at strikes from $70,000 to $100,000.
Analysts said the path of least resistance for bitcoin is on the higher side.
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Bitcoin rebound spurs demand for out-of-the-money calls at strikes from $70,000 to $100,000.
Analysts said the path of least resistance for bitcoin is on the higher side.
Bitcoin's (BTC) renewed price upswing has options traders reconsidering the possibility of the cryptocurrency reaching the $100,000 level at some point this year.
The leading cryptocurrency by market value has risen over 12% to $63,470 since Federal Reserve Chairman Jerome Powell ruled out additional tightening or rate hikes as the next policy move last Wednesday, CoinDesk data show. Friday's disappointing U.S. nonfarm payrolls (NFP) data validated Powell's stance, accelerating BTC's recovery.
As such, there has been a notable increase in demand for bitcoin call options on leading cryptocurrency exchange Deribit and over-the-counter (OTC) networks. These options are specifically targeting a rally to new highs, potentially surpassing $75,000 and even reaching $100,000.
"We are seeing some bullish follow-through in volatility and rates following the reversal bounce from Friday and into the weekend. BTC risk reversals have gone positive (calls more expensive than puts), and [there has been a] renewed demand for BTC Sep expiry $75,000 and $100,000 calls," QCP Capital said in a note on Monday.
