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Bitcoin

Market analysts and crypto traders have been closely monitoring a series of indicators that suggest Bitcoin’s (BTC) price could surge beyond $36,000. Several market dynamics, notably involving options trading, are at play as enthusiasts and investors alike anticipate the next significant price movement. 
The anticipation builds on the back of a strong performance in October 2023, where <a href="https://crypto.ro/en/bitcoin/">Bitcoin</a> registered a notable 28.5% gain, marking it as the second-best performing month of the year, only trailing behind January’s impressive 39.6% increase​. This uptick brought <a href="https://crypto.ro/en/cryptocurrencies/bitcoin/">Bitcoin</a> to a new 2023 high of $35.2k, further fueling speculations around the pivotal $36k price point and its potential to act as a springboard for higher valuations​. 
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 <img decoding="async" class="wp-image-25009 size-full" src="https://crypto.ro/en/wp-content/uploads/2023/11/btc-price.jpg" alt="btc price" width="1392" height="760" srcset="https://crypto.ro/en/wp-content/uploads/2023/11/btc-price.jpg 1200w, https://crypto.ro/en/wp-content/uploads/2023/11/btc-price-300x164.jpg 300w, https://crypto.ro/en/wp-content/uploads/2023/11/btc-price-1024x559.jpg 1024w, https://crypto.ro/en/wp-content/uploads/2023/11/btc-price-768x419.jpg 768w, https://crypto.ro/en/wp-content/uploads/2023/11/btc-price-750x409.jpg 750w, https://crypto.ro/en/wp-content/uploads/2023/11/btc-price-1140x622.jpg 1140w" sizes="(max-width: 1392px) 100vw, 1392px" title="Bitcoin price predicted to surge above $36K, options data indicates 20">
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 Bitcoin (BTC) 1 year price chart | CoinMarketCap
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At the heart of the anticipated surge is a phenomenon known as a “gamma squeeze.” In the world of finance, particularly options trading, gamma refers to the rate of change in the delta for each one-point move in the underlying asset. This suggests that traders are bracing for potential volatility in Bitcoin’s price movement. 
Recent data from market analytics firms <a href="https://crypto.ro/en/news/ethers-61-six-month-run-traders-anticipate-bullish-continuation/">Amberdata</a> and <a href="https://crypto.ro/en/news/galaxy-ceo-wants-to-punch-sbf-skybridge-wants-ftx-stake/">Galaxy Digital</a> highlight that the demand for high strike price call options has led to substantial net short gamma exposure for market makers beyond the $36,000 mark. To maintain a direction-neutral portfolio, market makers have been increasing their purchases of Bitcoin in the spot market as its value ascends, a strategy known to accelerate the asset’s rally​. 
Further fuelling the bullish sentiment is the activity of options dealers. Should Bitcoin’s price hit the range of $35,750 to $36,000, experts predict a buying frenzy, where options dealers would need to purchase $20 million in spot Bitcoin for each 1% price rise. This scenario could potentially catalyze a significant price surge, enticing more investors to jump on the bandwagon. 
The sentiment around Bitcoin has been soaring recently, coinciding with open interest (OI) on <a href="https://crypto.ro/en/news/bitcoin-faces-crucial-test-amidst-options-expiry-and-dollar-strength/">Bitcoin Options</a> reaching new highs. The Chicago Mercantile Exchange reported record-breaking volumes of open interest, reflecting heightened trader engagement and belief in the cryptocurrency’s potential upside. 
<figure id="attachment_25008" aria-describedby="caption-attachment-25008" style="width: 100%" class="wp-caption alignnone">
 <img decoding="async" class="wp-image-25008 size-full" src="https://crypto.ro/en/wp-content/uploads/2023/11/Screenshot-2023-11-01-at-14.30.36.png" alt="Screenshot 2023 11 01 at 14.30.36" width="2746" height="932" srcset="https://crypto.ro/en/wp-content/uploads/2023/11/Screenshot-2023-11-01-at-14.30.36.png 1200w, https://crypto.ro/en/wp-content/uploads/2023/11/Screenshot-2023-11-01-at-14.30.36-300x102.png 300w, https://crypto.ro/en/wp-content/uploads/2023/11/Screenshot-2023-11-01-at-14.30.36-1024x348.png 1024w, https://crypto.ro/en/wp-content/uploads/2023/11/Screenshot-2023-11-01-at-14.30.36-768x261.png 768w, https://crypto.ro/en/wp-content/uploads/2023/11/Screenshot-2023-11-01-at-14.30.36-750x255.png 750w, https://crypto.ro/en/wp-content/uploads/2023/11/Screenshot-2023-11-01-at-14.30.36-1140x387.png 1140w" sizes="(max-width: 2746px) 100vw, 2746px" title="Bitcoin price predicted to surge above $36K, options data indicates 21">
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 Open interest (OI) on Bitcoin Options reaching new highs this year | CoinGlass
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However, it’s crucial to note that despite this positive sentiment and the potential for a price surge, the odds of Bitcoin setting a new all-time high by year-end remain relatively low, at around 5%, according to data.

Bitcoin price predicted to surge above $36K, options data indicates

crypto.ro global

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