Ethereum

2024

Bitcoin

April

As Bitcoin breached the $52,000 mark, a notable shift in investor sentiment has been observed, with an increased interest in call options for Bitcoin at ‘ambitious’ strike prices. This trend, primarily focusing on strikes above $60,000, signals a ‘robust’ confidence among traders in Bitcoin’s potential for further gains. 
QCP Capital, a renowned crypto asset trading firm, <a href="https://www.qcp.capital/featured-article/qcp-options-vol-cast-15-feb-24/" target="_blank" rel="noopener nofollow">explained</a> this phenomenon in its latest report, emphasizing the concentrated buying activity in these high-strike call options with&nbsp;various expiry dates. 
<h2 id="a-surge-in-high-strike-call-options">A Surge In High-Strike Call Options</h2> 
Call options are financial contracts that give the buyer the right, but not the obligation, to buy an asset at a predetermined price within a specified timeframe. 
In the context of Bitcoin, this surge in call option buying at higher strike prices suggests a bullish outlook from investors, betting on Bitcoin’s<a href="https://www.newsbtc.com/bitcoin-news/bitcoin-rise-to-52000-masks-potential-pitfalls-ahead-analyst-warns/" target="_blank" rel="noopener "> price to climb</a> significantly higher than its current levels. 
This optimism is not just a speculative bubble but is backed by substantial financial commitments, with QCP Capital highlighting close to “$10 million spent on premiums for $60,000 and $80,000” strike options alone. 
According to the detailed analysis by QCP Capital, there’s been a <a href="https://www.newsbtc.com/news/bitcoin-breaches-52000-reclaiming-1-trillion-market-cap-as-btc-eyes-higher-ground/" target="_blank" rel="noopener ">significant uptick</a> in the purchase of Bitcoin call options, with strike prices towering above $60,000. This activity is spread from April to December expiries, indicating a long-term bullish sentiment among investors. 
Deribit, the leading crypto derivatives exchange, corroborates this <a href="https://metrics.deribit.com/options/BTC" target="_blank" rel="noopener nofollow">trend</a>, reporting a substantial concentration of open call options at $65,000 and higher. 
The December expiry call option cluster targets a $100,000 strike price, showcasing some traders’ ultra-bullish expectations for Bitcoin’s year-end valuation. 
<img loading="lazy" decoding="async" class="wp-image-575343 size-large" src="https://www.newsbtc.com/wp-content/uploads/2024/02/Screenshot-2024-02-15-at-17.16.39.png?w=860&amp;resize=860%2C267" alt="Bitcoin (BTC) Options Open Interest By Strike Price. " width="860" height="267" srcset="https://www.newsbtc.com/wp-content/uploads/2024/02/Screenshot-2024-02-15-at-17.16.39.png?w=2884 2884w, https://www.newsbtc.com/wp-content/uploads/2024/02/Screenshot-2024-02-15-at-17.16.39.png?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/02/Screenshot-2024-02-15-at-17.16.39.png?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/02/Screenshot-2024-02-15-at-17.16.39.png?w=860&amp;resize=860%2C267 860w, https://www.newsbtc.com/wp-content/uploads/2024/02/Screenshot-2024-02-15-at-17.16.39.png?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/02/Screenshot-2024-02-15-at-17.16.39.png?w=2048 2048w, https://www.newsbtc.com/wp-content/uploads/2024/02/Screenshot-2024-02-15-at-17.16.39.png?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/02/Screenshot-2024-02-15-at-17.16.39.png?w=1140 1140w" sizes="(max-width: 860px) 100vw, 860px" data-recalc-dims="1"> 
The end of March sees the largest volume of Bitcoin options calls at a $60,000 strike, revealing the immediacy of some traders’ bullish outlooks. With over 1,273 contracts set for the March 29 expiry, the notional value of these bets exceeds $67 million, highlighting the significant capital being placed on these optimistic market predictions. 
<h2 id="bitcoin-market-sentiment-and-predictions">Bitcoin Market Sentiment And Predictions</h2> 
This enthusiastic options trading activity occurs amid bullish Bitcoin price forecasts. Matt Dines, Chief Investment Officer at Build Asset Management,<a href="https://www.newsbtc.com/news/bitcoin/bitcoin-price-rally-75000-cup-handle-breakout/" target="_blank" rel="noopener "> identifies a ‘Cup and Handle’ pattern</a> on the Bitcoin price chart, suggesting a potential rally to $75,000. 
<blockquote class="twitter-tweet"> 
 Cup and handle <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">#Bitcoin</a> <a href="https://twitter.com/hashtag/sendit?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">#sendit</a> <a href="https://t.co/DmYAVwmLfj" target="_blank" rel="noopener nofollow">pic.twitter.com/DmYAVwmLfj</a> 
 — Matt Dines (@BuildCIO) <a href="https://twitter.com/BuildCIO/status/1757539368041099465?ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">February 13, 2024</a>
</blockquote> 
Similarly, QCP Capital analysts see Bitcoin <a href="https://www.qcp.capital/featured-article/qcp-options-vol-cast-15-feb-24/" target="_blank" rel="noopener nofollow">reaching new all-time highs</a>, projecting a significant surge before the end of March 2024. 
This collective optimism is also mirrored in the Ethereum market, where there’s a <a href="https://www.newsbtc.com/news/ethereum/betting-big-on-ethereum-options-traders-target-4000-mark-amid-market-optimism/" target="_blank" rel="noopener ">notable accumulation of call options around the $4,000 strike price for mid-year expiries</a>, indicating a broader positive sentiment across major cryptocurrencies. 
Meanwhile, Bitcoin continues to make significant moves, crossing the $52,000 threshold with a nearly 20% increase in the past week, indicating that the market’s <a href="https://www.newsbtc.com/bitcoin-news/52000-and-climbing-bitcoin-eyes-new-highs-this-march-predicts-top-firm/" target="_blank" rel="noopener ">bullish sentiment</a> is palpable. 
<img loading="lazy" decoding="async" class="size-medium" src="https://www.tradingview.com/x/Fvvh4k5O/" alt="Bitcoin (BTC) price chart on TradingView" width="2770" height="1556"> 
Featured image from Unsplash, Chart from TradingView

Bitcoin’s Bull Run Ignites: Traders Target $80,000 In High-Stakes Options Frenzy

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