Bitcoin options traders are betting that the leading cryptocurrency might break $75,000 this month. This optimistic wager comes against a backdrop of growing interest and hope in Bitcoin’s market potential, fueled by positive economic data and increased institutional acceptance.
Bloomberg reports that in recent weeks, data from major options exchanges have shown a huge surge in optimistic bets on Bitcoin. Traders are buying call options with strike prices of $75,000 or higher, signaling that they believe Bitcoin’s price might exceed this level within a month. This increase in optimistic sentiment demonstrates increased confidence among market players in Bitcoin’s near-term prospects.
Bitcoin call options with a strike price of $75,000 across all expirations have the highest open interest, or number of outstanding contracts. That is followed by $100,000 and $80,000 strike prices, according to statistics gathered by Deribit, the largest cryptocurrency options exchange. Call options give buyers the right to acquire the underlying asset at a predetermined price and time.
Bitcoin reached a high of $71,756 this week and is currently trading at $70,890, down 0.65% after snapping a five-day gaining streak. The largest cryptocurrency fell from a record high of $73,798 reached on March 14 as demand for recently approved Bitcoin ETFs cooled.
With Federal Reserve rate cuts expected to stimulate demand for riskier assets, inflows have returned, and traders are eyeing a new high.
The call options expiring on June 28 had the biggest open interest around the strike price of $75,000, while the open interest for those expiring on July 26 and December 27 is around $100,000.
