Bitcoin options show traders setting sights on new record high
BNN Bloomberg
The options market is showing that crypto traders are targeting what would be a new record price for Bitcoin after the largest cryptocurrency reached a more than two-year high of $50,000 this week.
The open interest, or number of outstanding contracts, for calls that expire on March 29 with strike prices of $60,000, $65,000 and $75,000 has seen a significant increase, according to data from the largest crypto options exchange Deribit. Bitcoin’s all-time price of almost $69,000 was set in November 2021.
The demand for the call options comes even after Bitcoin snapped its longest winning streak in a year following the breach of $50,000 on Monday. Traders attributed the pullback on Tuesday to speculators taking a brief respite after seven days of consecutive gains.
“The options market at large is currently positioning for continued momentum in the coming months,” Vetle Lunde, senior analyst at K33 Research. “In the last week, flows have largely been directed towards bullish price action with a lot of activity in far out of the money calls.”
