Bitcoin Options Traders Eye $140,000 After Record-Setting Rally
The sudden push to a fresh all-time high in Bitcoin over the weekend has options traders adding to bets that the largest cryptocurrency will rally to $140,000.
Short-term Bitcoin options contracts that settle toward the end of the year have seen open interest clustered around that strike price for calls, according to data from crypto derivatives exchange Deribit by Coinbase. There has also been a moderate increase in demand for puts, as traders seek downside protection from a pullback after the rally.
Market Analysis
According to Greg Magadini, director of derivatives at Amberdata, ‘We currently see the largest notional open interest on record for Bitcoin futures and perpetual contracts even after a bunch of ‘buy-to-close’ liquidations. The market rally has caught people by surprise, we aren’t at the top yet, especially as many traders shorted this market.’
Bitcoin topped $125,000 for the first time just after midnight Saturday in New York, as the around-the-clock nature of the crypto market and decreased liquidity likely allowed bullish traders to push the price through that threshold.
For Indian investors looking to participate in the Bitcoin investing space, it’s essential to understand the cryptocurrency market trends and the factors driving the surge.
Volatility and Corrections
As Jean-David Péquignot, chief commercial officer for Deribit by Coinbase, noted, ‘From here, watch for volatility spikes and any shift in put volume as a red flag for near-term corrections. Bulls have their eyes on $130K+, and bears might find opportunities in overbought squeezes.’
Bitcoin set another record high on Monday, climbing as much as $2.8% to $126,251, and has now more than doubled in the past year.
The Bitcoin price analysis suggests that the cryptocurrency’s advance coincided with a US government shutdown that began on Oct. 1 and has helped fuel demand for perceived safe-haven assets.
Rising Demand and Investor Sentiment
Rising demand in the spot market has been the biggest driver as of late, traders said. Investors poured $3.2 billion into a group of 12 US Bitcoin exchange-traded funds last week, the second-highest haul since they launched in 2024.
Meanwhile, the notional open interest on BlackRock’s iShares Bitcoin Trust ETF rose to a record $49.8 billion on Friday, data compiled by Bloomberg show.
For Indian investors looking to stay ahead of the curve, it’s essential to stay updated on the stock market news and cryptocurrency investing tips.
Conclusion
In conclusion, the Bitcoin price surge has options traders betting on a $140,000 target. As the cryptocurrency market continues to evolve, it’s essential for Indian investors to stay informed and adapt to the changing market trends.
By following the Bitcoin investing strategies and staying updated on the cryptocurrency market analysis, Indian investors can make informed decisions and participate in the growing cryptocurrency market.
