Some optimism is beginning to creep into the cryptocurrency market, with Wall Street traders starting to bet that Bitcoin’s (BTC) price will rise back above $80,000 U.S.
Bitcoin is currently trading at $69,000 U.S. and continues to struggle to stay above the key support level of $70,000 U.S.
Over the past six months, the price of Bitcoin has fallen from an all-time high of $126,000 U.S. and has largely been stuck in a range of $65,000 U.S. to $69,000 U.S.
But now, some traders are starting to bet that a meaningful recovery in Bitcoin might soon be on its way.
Within options markets, bets are rising that Bitcoin’s price will be back above $80,000 U.S. by the end of June this year.
There is now a 35% chance that Bitcoin will climb above $80,000 U.S. by midyear, a sign that bullish sentiment is rising within the crypto sector.
The action in options markets has turned more positive in the past week after skewing negative since the start of the year.
Options traders are also dialing back their bets that a severe crash will occur in the crypto market and raising expectations for more stable prices moving forward.
Some analysts are saying that the positive bets being placed in options markets indicate that Bitcoin might soon bottom and finally reverse higher.
However, other analysts continue to urge caution, noting that there are few catalysts on the horizon to move Bitcoin and other cryptocurrencies higher on a sustained basis.
Geopolitical turmoil and volatility in stocks and other risk assets could also continue weighing on Bitcoin and digital assets, warn some analysts.
