Investors Bet on Bitcoin Breaking $74,000 Barrier
- Large bitcoin call options bought with $74,000 strike price for June expiry.
- Analysts speculate investors betting on price rise above $74,000 by month-end.
- Bitcoin options concentrated at $75,000 calls for June expiry.
- Highest trading volume on Deribit in $80,000 calls for June expiry.
- Increased institutional demand for bitcoin attributed to spot bitcoin ETF inflows.
- Interest rate cuts could impact sustained institutional demand for bitcoin.
Summary :
Recent large purchases of bitcoin call options with a strike price above $74,000 for June expiration have led analysts to speculate that investors are betting on prices rising above $74,000 by the end of the month. QCP Capital analysts noted strong bullish follow-through and significant call buying for June expiries, indicating a positioning in the options market for a decisive break above the all-time high of $74,000. Data from the Deribit derivatives exchange shows that the largest cluster of bitcoin options open interest for June's end-of-month expiry are calls at a strike price of $75,000. Additionally, there was high trading volume in calls with a strike price of $80,000 for the end-of-June expiry. Neil Roarty, an analyst at Stocklytics, attributed bitcoin's bullish uptrend to increased inflows from spot bitcoin ETFs, indicating a notable uptick in institutional demand. However, the sustainability of this demand will depend on the macroeconomic outlook for crypto and interest rates. The Bank of Canada recently cut its overnight rate by 25 basis points, signaling a potential reduction in interest rates. Bitcoin is currently trading at around $70,750, with a 1.3% increase in the past 24 hours.
Sources :
- TheBlock
