What to Know:
- Options market sees renewed action in call options at $100,000 and $120,000 strikes on Deribit.
- This indicates expectations for a rally to record highs post-Trump's inauguration, according to Amberdata.
Market Outlook
Recent trends in the Bitcoin (BTC) market suggest a forthcoming surge in prices as President-elect Donald Trump prepares for his inauguration on January 20. A significant $6 million trade for $100,000 strike call options expiring on March 28 was reported on Deribit, underscoring strong trader confidence.
"This trade anticipates that new highs for bitcoin will be broken just a few months after Trump officially takes office," Amberdata stated on X.
Traders are also leaning towards $120,000 strike options, reinforcing bullish sentiment that prices will exceed this mark. The $120,000 call has gained popularity with a notional open interest of $1.52 billion.
Call options are a way for buyers to secure the right to purchase an asset at a predetermined price later on, reflecting a bullish outlook in the market.
As BTC aims to reclaim the $100,000 threshold, the cryptocurrency is trading above $99,500, showing an 8% recovery from a low of $91,384.
"The inauguration period is expected to be rich with bullish announcements that could propel bitcoin's price higher," said Greg Magadini.
The anticipation for pro-crypto regulatory changes has been on the rise since Trump's election win, which previously saw BTC prices soar from around $70,000 to over $108,000 shortly thereafter. However, some momentum was lost in December owing to profit-taking and anticipated Federal Reserve rate adjustments.
