Options traders are turning bullish on Bitcoin (BTC).
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Market data from Deribit shows that options traders are buying higher-level calls on Bitcoin in the $130,000 price range. Specifically, options traders are betting that if Bitcoin’s price breaks above the $110,000 resistance level, it will soar all the way to $130,000 or higher.
Bitcoin’s price has been rangebound between $100,000 and $110,000 since the end of May this year. However, traders are betting that a breakout to new all-time highs is coming. September call options at $130,000 are among the most popular bets currently, with call spreads in the $115,000 to $140,000 range.
Positive Sentiment
Call options are essentially bets that an asset’s price will rise in the near-term. Options traders who buy calls are bullish on a particular asset or the market overall. While BTC’s price has been stuck between $100,000 and $110,000 for 50 days, options traders see that changing as investors remain keen on risk assets such as stocks and cryptocurrencies.
Volatility in the crypto market could spike after the June minutes from the U.S. Federal Reserve are released in coming days, and as the 90-day tariff pause for many U.S. trading partners is extended to Aug. 1. Bitcoin is currently trading at $108,450, up 15% on the year.
Is BTC a Buy?
Most Wall Street firms don’t offer ratings or price targets on cryptocurrencies such as Bitcoin, so we’ll look instead at its three-month performance. As one can see in the chart below, the price of BTC has risen 34.03% in the last 12 weeks.
