Bitcoin options traders are showing increasing confidence in the cryptocurrency’s potential to soar to new heights this month, with a flurry of buying activity observed in options contracts tied to June expiry. Market data indicates a bullish sentiment prevailing among investors, suggesting a possible breakthrough to fresh record prices.
According to reports from various market players, including digital asset hedge fund QCP and institutional crypto derivatives trading network Paradigm, there has been a notable uptick in buying of call options for June expiries. These derivative contracts provide buyers with the right to purchase an asset at a predetermined price before or on the expiry date, signaling optimism among traders regarding Bitcoin‘s price trajectory.
“We observed strong bullish follow-through with significant call buying for June expiries, indicating positioning in the options market for a decisive break of 74,000 all-time-highs this month,” stated a market update from QCP.
Joshua Lim, co-founder of crypto derivatives principal trading firm Arbelos Markets, highlighted a particularly concentrated buying activity, noting the acquisition of approximately 1100 contracts of June 28 expiration call spreads in the $74,000-$80,000 range, representing substantial notional demand.
The surge in call buying reflects a bullish outlook on Bitcoin’s price, with investors anticipating a potential rally beyond current levels. This sentiment is further supported by Bitcoin’s recent consolidation phase following its all-time high of nearly $74,000 in mid-March, coupled with a steady recovery from a dip below $57,000 in early May.
Matrixport, a crypto investment services firm, echoed this sentiment, suggesting that Bitcoin is poised for an upward surge. The company highlighted heavy inflows to U.S. spot bitcoin exchange-traded funds and rising open interest in the futures market as indicators of potential bullish momentum.
Moreover, Matrixport pointed out a significant concentration of leveraged futures contracts betting on lower prices around the $72,000 range. This accumulation, totaling approximately $1.5 billion, could potentially trigger a short squeeze if Bitcoin surpasses the $72,000 level, further fueling upward momentum.
In summary, the heightened activity in Bitcoin options markets suggests growing confidence among traders in the cryptocurrency’s ability to achieve new record prices this month. With bullish sentiment prevailing and significant potential catalysts on the horizon, the stage appears set for Bitcoin to make a decisive move in the near term.
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