Expectations for Bitcoin Surge as $100K Call Options Gain Traction
Traders anticipate a price rally for Bitcoin following Donald Trump's inauguration, driven by significant call option activity.
Expectations for Bitcoin Surge as $100K Call Options Gain Traction
Traders anticipate a price rally for Bitcoin following Donald Trump's inauguration, driven by significant call option activity.
What to know:
- The options market is seeing renewed activity in call options at $100,000 and $120,000 strikes on Deribit.
- These signs suggest expectations of a price rally after Trump's inauguration, according to Amberdata.
Bitcoin (BTC) market trends indicate a bullish sentiment, with prices expected to reach new heights following President-elect Donald Trump’s inauguration on January 20.
On Saturday, a trader on Deribit invested over $6 million in $100,000 strike call options set to expire on March 28, as reported by Amberdata.
"This trade anticipates that new highs for Bitcoin will be set a few months after Trump officially takes office," Amberdata stated on X.
Traders are also favoring the $120,000 strike option, which is currently the most sought-after option on Deribit, with a notional open interest of $1.52 billion.
A call option allows the buyer to purchase the underlying asset at a predefined price later. Essentially, call buyers are bullish, hoping for substantial gains from an anticipated price increase.
Renewed interest in call options coincides with Bitcoin aiming to recover the $100,000 mark. Currently, the leading cryptocurrency is trading above $99,500, reflecting an 8% rebound from its December 30 low of $91,384, as reported by CoinDesk and TradingView.
"The inauguration will be crucial for announcements and policies that could positively impact Bitcoin’s outlook," said Greg Magadini from Amberdata in a weekly newsletter.
Similarly, CF Benchmarks, a regulated cryptocurrency index provider, echoed this sentiment but cautioned that potential policy delays could dampen enthusiasm.
"A restructured SEC with pro-cryptocurrency leadership may reduce enforcement risks and foster innovation. Together with streamlined compliance, this could boost investor confidence," CF Benchmarks noted in their annual report shared with CoinDesk.
The anticipation of favorable pro-crypto regulations has lifted market spirits since Trump’s election win in early November, during which Bitcoin surged from around $70,000 to over $108,000 shortly after. However, this bullish trajectory has slowed in late December, possibly due to profit-taking and cautious Fed rate projections.
