Overview

Traders are preparing for Bitcoin (BTC) market trends that signal a potential surge in prices following President-elect Donald Trump's inauguration scheduled for January 20.

On Deribit, a prominent crypto exchange, a trader recently executed a notable purchase exceeding $6 million for $100,000 strike call options expiring on March 28. According to data provided by Amberdata, this move reflects strong expectations for Bitcoin reaching new price levels shortly after Trump's inauguration.

"This trade anticipates that new highs for bitcoin will be broken just a few months after Trump officially takes office," Amberdata stated on X.

Additionally, traders remain net buyers at the $120,000 strike, highlighting optimism for a potential rally surpassing this mark. Currently, this option is the most popular on Deribit, reflecting a notional open interest of $1.52 billion.

A call option grants the buyer the right to purchase the underlying asset at a predetermined price, illustrating a bullish outlook on market performance.

The renewed demand for such options coincides with Bitcoin's attempt to reclaim the $100,000 threshold, with current trading values around $99,500, marking an 8% recovery since a recent low of $91,384.

"The inauguration and right after will be a prime time for bullish announcements and policies that could serve as catalysts for Bitcoin growth," noted Greg Magadini, director of derivatives at Amberdata.

CF Benchmarks echoed these sentiments, cautioning that any delays in policy development could dampen the prevailing bullish sentiment.

"A restructured SEC under pro-cryptocurrency leadership may reduce enforcement risks and foster innovation, enhancing investor confidence," stated CF Benchmarks.

Bitcoin surged from approximately $70,000 to new high levels above $108,000 following Trump's victory in the U.S. elections. However, since December's latter half, the momentum has slowed, likely due to profit-taking and anticipated rate hikes by the Federal Reserve.