TL;DR
- Renewed Interest in Bitcoin: The recent price surge in Bitcoin has caught the attention of options traders, who now see the once-distant $100K milestone as a realistic target for this year. Bitcoin’s price climbed over 12% to reach $63,470.
- Catalysts for Rally: Federal Reserve Chairman Jerome Powell’s announcement ruling out further tightening or rate hikes, along with disappointing U.S. nonfarm payrolls data, fueled Bitcoin’s recovery.
- Growing Confidence: Traders are increasingly confident in Bitcoin’s upward trajectory. Notably, options markets show renewed demand for $75,000 and $100,000 call options. Paradigm reports appetite for out-of-the-money (OTM) calls, reinforcing bullish sentiment.
Bitcoin’s (BTC) recent price surge has sparked renewed interest among options traders, with many now eyeing the once-distant $100K milestone as a tangible target for this year. The leading digital currency has experienced a significant uptick, climbing over 12% to reach $63,470.
This rally was catalyzed by Federal Reserve Chairman Jerome Powell’s announcement last Wednesday, which ruled out further tightening or rate hikes as the next policy move.
The subsequent release of the U.S. nonfarm payrolls (NFP) data, which fell short of expectations, further validated Powell’s decision and propelled Bitcoin’s recovery forward. This economic backdrop has triggered a surge in demand for Bitcoin call options on prominent cryptocurrency exchange Deribit, as well as over-the-counter (OTC) networks.
These options are not just speculative; they are a bet on Bitcoin’s potential to scale new heights, with targets set beyond $75,000 and up to the coveted $100,000 mark. QCP Capital, in a recent note, highlighted this bullish sentiment, stating:
“BTC risk reversals have gone positive, with calls now more expensive than puts, indicating a renewed demand for BTC Sep expiry $75,000 and $100,000 calls.”
Paradigm reports an appetite for Bitcoin’s out-of-the-money (OTM) calls.
This shift suggests a growing confidence among traders in Bitcoin’s upward trajectory. The optimism is echoed by OTC institutional cryptocurrency trading network Paradigm, which reported an increased appetite for out-of-the-money (OTM) calls—options with strike prices significantly above Bitcoin’s current market rate.
Paradigm’s Telegram broadcast revealed:
“The options market seemed to anticipate a short-term leg higher up earlier this morning, with top BTC and ETH trades consisting of OTM calls bought in size.”
This includes a notable shift by a trader who closed a March 25 $200,000 call position to purchase a July 2024 $85,000 strike. Deribit’s data further underscores the bullish market expectations, showing that traders have committed over $688 million to the $100,000 strike call options across various maturities.
This value represents the highest notional open interest across all options available on the exchange. Currently, more than 150,000 call option contracts, valued at $9.5 billion, are active on Deribit—over double the open interest in put options.
As Bitcoin continues its ascent, the question on many investors’ minds is not if, but when the digital currency will breach the $100K threshold. With market sentiment tilting towards the bulls, the path to $100,000 seems less like a dream and more like a destination on Bitcoin’s horizon.
