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Bitcoin Options Traders Eye New All-Time Highs Amid Bullish Market Activity

Market data suggests that Bitcoin (BTC) options traders are increasingly betting on the cryptocurrency reaching new record prices this month. According to digital asset hedge fund QCP, there has been “strong bullish follow-through” with significant call buying for June expiries.

This indicates that traders are positioning for Bitcoin to break its all-time high of $74,000 this month.

Options are derivative contracts that grant buyers the right to purchase or sell an asset at a specific price before or on a set expiration date. If the underlying asset fails to reach the strike price, the option expires worthless. Purchasing call options indicates a bullish outlook, while buying put options reflects a bearish sentiment.

Institutional crypto derivatives trading network Paradigm reported a distinctly bullish trend in the options market, noting “big sizes on long BTC out-of-money (OTM) call spreads” for the end of June, with some activity extending into July. Joshua Lim, co-founder of crypto derivatives firm Arbelos Markets, observed “very concentrated call buying” on Tuesday, with approximately 1,100 contracts for June 28 expiration call spreads in the $74,000-$80,000 range, totaling around $80 million in notional demand.

A call spread is a strategy where traders buy call options at a lower strike price while selling an equal number of calls at a higher strike price, aiming to profit from a moderate price increase.

Bitcoin has been consolidating for nearly three months after hitting an all-time high just below $74,000 in mid-March. Following a brief dip below $57,000 in early May, the cryptocurrency has steadily recovered and is currently trading around $71,000, just a few percentage points away from setting new record prices.

Crypto investment firm Matrixport highlighted in a recent X post that Bitcoin “appears ready to squeeze higher,” supported by substantial inflows into U.S. spot Bitcoin exchange-traded funds and increasing open interest in the futures market. Matrixport also noted that a surge above $72,000 could trigger a short squeeze, as approximately $1.5 billion in leveraged futures contracts betting on lower prices could be liquidated, further driving the price upward.

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Disclaimer: Not Investment Advice

it’s crucial to understand that the information provided here is not to be construed as investment advice. The crypto market is dynamic and highly speculative, and decisions should be made based on thorough personal research and consideration of individual risk tolerance. Always consult with financial professionals and conduct your own due diligence before making any investment decisions. The intention of this exploration is to present insights and trends, not to provide specific investment recommendations.

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