Recently, the Bitcoin options market has seen a flood of purchases of call options with strike prices above $74,000 that are set to expire in June. Analysts speculate that many investors are betting that the price of Bitcoin will exceed $74,000 by the end of this month. QCP Capital analysts said on the social platform:
“Our trading desk has observed strong bullish follow-through with heavy buying of Bitcoin options expiring in June, indicating that the options market is positioning Bitcoin to break through a new all-time high of $74,000 this month.”
2/ Our desk saw strong bullish follow-through with significant Call buying for June expiries, indicating positioning in the options market for a decisive break of 74k all-time-highs this month.
— QCP Capital (@qcpcapital) June 5, 2024
Among Bitcoin options expiring at the end of June, calls with a strike price of $75,000 have the largest open interest, with a notional value of $920 million, according to data from derivatives exchange Deribit.
Additionally, the highest trading volume on Deribit on Wednesday was a call option with a strike price of $80,000, with 1,723 contracts traded and a notional value of over $123 million. According to GTRadar’s weekly report this week, the increase in ETF inflows this week seems to be evidence of a rebound in institutional demand. However, whether this demand can continue to increase depends on whether Bitcoin can break through key resistance levels and the impact of this week’s non-farm payrolls data. result.
Stocklytics analyst Neil Roarty also expressed a similar view, saying during the interview:
“The question now is whether these institutional investors will remain bullish. This will be closely related to interest rates. If we see the Fed cut rates early, Bitcoin’s recent strong returns will be compared to more traditional and perhaps safer investments. It might look more attractive."
This Article Bitcoin Calls Concentrated Above 75,000 Mg, Could ATH Be Ahead This Month? First appeared in Zombit.