- Options traders are pouring millions into bets that the cryptocurrency will hit $100,000.
- Crypto market maker Wintermute analysed options data and outlines what’s driving optimism.
- Runes is among drivers of the expected rally.
Traders are loading up on bullish options that pay off if Bitcoin reaches $100,000 in September, according to crypto market maker Wintermute.
It’s a sign they’re optimistic, and they have been since February, Jake Ostrovskis, an over-the-counter trader at the firm, told DL News. He added that Bitcoin’s ability to hover at or above $60,000 is a sign that short sellers are fleeing.
Bullish options
Options activity for contracts expiring in December, and ones expiring in March next year, is mostly bullish, he said.
Contracts representing almost $6.3 billion worth of Bitcoin will expire on April 26, according to options metrics platform basedmoney, almost two-thirds of which are bullish.
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Traders have piled another $3.3 billion in bullish Bitcoin bets expiring on June 28 that pay off if the price reaches $75,000.
Bartosz Lipiński, CEO of crypto exchange Cube, who used to work at hedge fund Citadel, told DL News that despite macroeconomic concerns and a post-halving sell-off, buyers are stepping in.
He said he’s seeing “a good amount of demand,” as traders bought $1.2 billion worth of Bitcoin during a recent low.
Bargain hunters are seizing on lower prices to buy so-called satoshis, the smallest unit of measure possible for Bitcoin, Lipiński said.
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Ostrovskis concurred.
“We noted significant spot buying across the board” via over-the-counter desks, he said.
Lipiński named the Hong Kong spot Bitcoin ETFs and a Bitcoin token protocol called Runes as bullish catalysts.
Launched on the weekend, Runes allows developers and investors to interact with Bitcoin-native tokens, such as memecoins, in an easier fashion.
“How much Bitcoin bulls run up the price is anyone’s guess, but I’d say a new highwater mark is dependent more on Runes than anything else,” Lipiński said. “Early indications are that it will likely deliver on expectations.”
Crypto market movers
- Bitcoin slumped 2.8% in the last 24 hours, and is trading for $64,710.
- Ethereum is down 1.7% in the same period, at $3,170.
What we’re reading
Tom Carreras is a markets correspondent at DL News. Got a tip about Bitcoin and options? Reach out at tcarreras@dlnews.com