Bitcoin’s (BTC) rally is gaining momentum, with institutions stepping up their exposure to the leading cryptocurrency through Deribit’s BTC options market.
“Panning out over just the last week shows a much bigger sign of institutional positioning on BTC,” Deribit said on X Friday, noting the bullish flows in the BTC options.
The exchange has seen robust buying of call options at the $110,000 strike expiring in June and July and calendar spreads involving a long position in the $140,000 strike call expiring at the end of September and a short position in the $170,000 strike call expiring at the end of the year.
The demand for the $110,000 strike call indicates expectations for a continued price rise in the coming weeks, with potential for an extended rise to at least $140,000.
A call option gives the purchaser the right but not the obligation to buy the underlying asset at a predetermined price on or before a specific date. A call buyer is implicitly bullish on the market.
The exchange added that the bullish flows also included a roll over of long positions in May expiry to July expiries at strikes ranging from $110,000 to $115,000.
CoinDesk data show BTC topped $104,000 Thursday, marking a near 40% recovery from the early April lows under $75,000, amid optimism from the U.S.-U.K. trade deal and consistent inflows into the spot ETFs. Technical charts point to more gains ahead.
Ether, the native token of Ethereum’s blockchain, has risen over 30% to $2,411 in two days, marking a bullish breakout on technical charts. The development has triggered interest in bullish ETH plays on Deribit, with traders snapping up the June expiry calls at $2,400 and longer duration call spreads betting on gains up to $2,600-$2,800.
