Crypto Investors Target Record Bitcoin Prices with Increased Call Options Activity
Crypto investors are showing a strong interest in Bitcoin’s potential for reaching record prices, as evidenced by the increased activity in call options on the market. Bloomberg Intelligence data reveals a surge in call options expiring on Mar. 29 at strike prices of $60,000, $65,000, and $75,000. It is noteworthy that Bitcoin’s previous all-time high of $69,000 was achieved over two years ago in November 2021.
What Increased Call Options Activity Indicates
A high level of activity in the options market signifies significant speculative interest and strategic positioning among Bitcoin investors. When traders invest heavily in call options above the current market price, it suggests a bullish outlook, indicating their anticipation of the asset’s price surpassing these levels. This heightened activity reflects the market’s sentiment and expectations for future price movements while increasing volatility and liquidity.
Bitcoin’s Recent Performance
On Monday, Bitcoin reached $50,000 for the first time in two years and recorded seven consecutive days of gains. However, following this surge, BTC experienced a price correction and traded back at $49,000 as traders took advantage of the recent rally.
Key Factors Influencing Bitcoin’s Valuation
The anticipated reductions in interest rates and the upcoming halving event are considered primary catalysts with the potential to further elevate Bitcoin’s valuation.
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