With Bitcoin's (BTC) price recovering from its recent selloff, options traders are again betting that the largest cryptocurrency’s price will reach $100,000 U.S.
Bitcoin’s price has gained 12% over the last week to currently trade at $63,500 U.S. The rebound comes after U.S. Federal Reserve Chair Jerome Powell ruled out additional interest rate hikes.
During April, Bitcoin’s price had fallen as low as $58,000 U.S. after a halving event, which is when the available supply of the crypto is reduced by 50%.
The recovery in Bitcoin’s price has led to renewed activity among options traders who are again taking out call options targeting prices between $75,000 U.S. and $100,000 U.S.
A call option gives a person the right but not the obligation to purchase an asset at a predetermined price on or before a specific date.
Call options are bets that an asset’s price will rise and are inherently bullish.
Institutional cryptocurrency trading network Paradigm says it is seeing a rise in call options for Bitcoin’s price to reach $100,000 in coming months.
In particular, call options with a July 2024 expiration and $85,000 U.S. price target are getting a lot of attention from traders right now, says Paradigm.
At the same time, data from Deribit shows traders have locked in over $688 million U.S. in the $100,000 U.S. call options on Bitcoin.
So far in 2024, Bitcoin’s price has risen 44%.
