Bitcoin’s Bull Run Ignites: Traders Target $80,000 In High-Stakes Options Frenzy
February 15 2024 - 11:00PM
NEWSBTC
As Bitcoin breached the $52,000 mark, a notable shift in investor
sentiment has been observed, with an increased interest in call
options for Bitcoin at ‘ambitious’ strike prices. This trend,
primarily focusing on strikes above $60,000, signals a ‘robust’
confidence among traders in Bitcoin’s potential for further gains.
QCP Capital, a renowned crypto asset trading firm, explained this
phenomenon in its latest report, emphasizing the concentrated
buying activity in these high-strike call options with various
expiry dates. Related Reading: $52,000 And Climbing: Bitcoin Eyes
New Highs This March, Predicts Top Firm A Surge In High-Strike Call
Options Call options are financial contracts that give the buyer
the right, but not the obligation, to buy an asset at a
predetermined price within a specified timeframe. In the context of
Bitcoin, this surge in call option buying at higher strike prices
suggests a bullish outlook from investors, betting on Bitcoin’s
price to climb significantly higher than its current levels. This
optimism is not just a speculative bubble but is backed by
substantial financial commitments, with QCP Capital highlighting
close to “$10 million spent on premiums for $60,000 and $80,000”
strike options alone. According to the detailed analysis by QCP
Capital, there’s been a significant uptick in the purchase of
Bitcoin call options, with strike prices towering above $60,000.
This activity is spread from April to December expiries, indicating
a long-term bullish sentiment among investors. Deribit, the leading
crypto derivatives exchange, corroborates this trend, reporting a
substantial concentration of open call options at $65,000 and
higher. The December expiry call option cluster targets a $100,000
strike price, showcasing some traders’ ultra-bullish expectations
for Bitcoin’s year-end valuation. The end of March sees the largest
volume of Bitcoin options calls at a $60,000 strike, revealing the
immediacy of some traders’ bullish outlooks. With over 1,273
contracts set for the March 29 expiry, the notional value of these
bets exceeds $67 million, highlighting the significant capital
being placed on these optimistic market predictions. Bitcoin Market
Sentiment And Predictions This enthusiastic options trading
activity occurs amid bullish Bitcoin price forecasts. Matt Dines,
Chief Investment Officer at Build Asset Management, identifies a
‘Cup and Handle’ pattern on the Bitcoin price chart, suggesting a
potential rally to $75,000. Cup and handle #Bitcoin #sendit
pic.twitter.com/DmYAVwmLfj — Matt Dines (@BuildCIO) February 13,
2024 Similarly, QCP Capital analysts see Bitcoin reaching new
all-time highs, projecting a significant surge before the end of
March 2024. This collective optimism is also mirrored in the
Ethereum market, where there’s a notable accumulation of call
options around the $4,000 strike price for mid-year expiries,
indicating a broader positive sentiment across major
cryptocurrencies. Related Reading: Betting Big On Ethereum: Options
Traders Target $4,000 Mark Amid Market Optimism Meanwhile, Bitcoin
continues to make significant moves, crossing the $52,000 threshold
with a nearly 20% increase in the past week, indicating that the
market’s bullish sentiment is palpable. Featured image from
Unsplash, Chart from TradingView
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