Bitcoin’s recent rally demonstrates increased institutional activity via the Deribit options market. Here’s what you need to know:
- Bitcoin’s surge in prices indicates heightened institutional confidence.
- Significant buying of call options at elevated strike prices suggests optimistic price expectations.
- Ethereum, the second-largest cryptocurrency, has also seen notable increases, enhancing interest in options on Deribit.
“Panning out over just the last week shows a much bigger sign of institutional positioning on BTC,” Deribit remarked on X, referencing the strong positive trends in options trading.
The exchange reports robust buying of call options with a $110,000 strike price due to expire in June and July, alongside calendar spreads that involve long positions at $140,000 strikes expiring in September versus short positions at $170,000 strikes later in the year.
This trend points towards expectations of Bitcoin continuing its rise, possibly reaching $140,000 soon. A call option allows buyers to purchase the underlying asset at a set price before a specified date, signifying a bullish outlook.
Furthermore, the bullish trends also reflect a rollover of existing long positions from May’s expiration to July, indicating sustained confidence.
CoinDesk data indicates that Bitcoin peaked at over $104,000 recently, representing a 40% recovery from the early April lows, bolstered by optimism surrounding a U.S.-U.K. trade agreement and strong inflows into spot ETFs.
Ethereum has climbed over 30% to $2,411 in just two days, leading to increased bullish trading activities on Deribit, where traders are betting on prices reaching between $2,600 and $2,800.
