Could Bitcoin Options Traders Strike it Rich at $100,000?
The price of Bitcoin has increased along with a notable increase in its implied volatilities for a number of important phrases. The daily volatility increased by almost 80%, indicating forecasts for increased price volatility in the near future.
The market’s attitude has drastically changed as a result of this spike in volatility, with an increasing proportion of traders taking a bullish stance.
Moreover, Bitcoin‘s daily trading volume also surged by almost 80% today, signifying increased market participation as more investors enter the fray, amplifying the bullish sentiment.
The leading crypto’s increase in volatility presents a complex scenario. On the one hand, the rising price is undeniably a bullish signal, potentially attracting new investors seeking capital appreciation.
Bitcoin broke through the $70,000 zone without warning, one step away from a new all-time high.
The rapid rise has driven all major term IVs up significantly, with BTC Dvol now over 78%, and market sentiment has quickly reversed to a long atmosphere.
More than 600 BTC of $100,000… pic.twitter.com/JY9QXyzGMi
— Greeks.live (@GreeksLive) April 8, 2024
However, the significant increase in IV injects a dose of caution. The market is anticipating a period of substantial price swings, both upwards and downwards.
As the market’s positive momentum persists, the imminent crypto halving event further fuels optimism. These halving events historically curtail the rate of new Bitcoin creation, potentially augmenting its value due to its constrained supply. This event typically catalyzes the coin’s price surge, often culminating in new all-time highs.
Call Options Signal Bullish Outlook: Will Bitcoin Break $100,000?
The recent surge in bullish sentiment within the cryptocurrency market, especially towards Bitcoin, has been striking.
This sentiment was underlined by a noteworthy block trade of more than 600 BTC $100,000 strike call options, valued at up to $45 million with premiums of $8.5 million, showcasing traders’ confidence in Bitcoin’s potential to reach or surpass the $100,000 mark. This surge highlights an increasing optimism prevailing in the market.
BTC seven-day price action. Source: CoinMarketCap
Meanwhile, Bitcoin‘s price escalated by 5% today, surpassing the $71,000 threshold, further bolstering this optimism. This upward trajectory was reinforced by nearly $570 million net inflow into spot Bitcoin ETFs over the past week, indicating a burgeoning interest in the “digital gold” as an investment avenue.
BTCUSD trading at $70,102 on the weekly chart: TradingView.com
Anticipation On Halving Grows
With the halving event on the horizon, the anticipation of achieving new peaks, potentially breaching the $100,000 milestone, intensifies among investors and market observers.
This growing optimism finds resonance in the substantial block trade of $100,000 strike call options, affirming the market’s confidence in Bitcoin’s capacity to scale new heights.
The cryptocurrency market is currently immersed in a significant wave of bullish sentiment, particularly regarding the top crypto asset. This optimism stems from a confluence of factors including Bitcoin‘s recent price surge, escalating interest in Bitcoin ETFs, and the anticipation surrounding the upcoming halving event.
Featured image from Pixabay, chart from TradingView
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