% 0.19
BTC Dominance:
% 0.46
Market Cap:
$2.41 T
% 1.30
Fear & Greed:
74 / 100
$ 66.078
BTC Dominance:
% 54.0
Market Cap:
$2.41 T

Bitcoin Options Traders Expect a Breakout Above $74K and New Record Prices


One Bitcoin options watcher noted “very heavy buying” with the aim of profiting from a rally between $74,000 and $80,000 by the end of this month.

Options trading desks saw heavy buying activity for BTC call options with June expiration. Matrixport stated that BTC is “poised to squeeze higher” as approximately $1.5 billion worth of short positions concentrated around $72,000 can be liquidated.

Market data shows that Bitcoin (BTC) option traders are increasingly betting on the asset to hit new record prices this month. “Our desk has seen a strong bullish continuation with significant put option purchases for June delivery, indicating positioning in the options market for a decisive breakout of the 74,000 all-time high this month,” digital asset hedge fund QCP said in a market update on Wednesday.

Options are derivative contracts that give buyers the right to buy or sell an asset at a certain price on or before a certain date. If the underlying asset does not reach a certain price (unless it is in the money), the option becomes worthless. Buying a call option expresses an upward expectation for the price of the asset, while buyers of a put option express a downward expectation.

“Option flow was clearly bullish today, with large BTC OTM [out-of-the-money] call spreads of large sizes for the end of June and to a lesser extent for the end of July,” Paradigm said in a Telegram post. Joshua Lim, co-founder of crypto derivatives prime trading firm Arbelos Markets, noted Tuesday that approximately 1,100 contracts were purchased in the $74,000-$80,000 call spreads expiring June 28, representing “very heavy buying” representing approximately $80 million in nominal demand. .

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A call spread is an options trading strategy that aims to make a profit by selling the same amount of call options at a higher strike price while buying call options in the same expiration at a lower strike price.

Bitcoin has consolidated for almost three months since reaching an all-time high of just under $74,000 in mid-March. After briefly falling below $57,000 in early May, it has recovered steadily and is now trading around $71,000, just a few points away from new record prices.

Bitcoin “looks poised to squeeze higher,” crypto investment services firm Matrixport said in an

A breakout above the $72,000 level could trigger a short squeeze, as Matrixport noted, as approximately $1.5 billion of leveraged futures contracts concentrated in that range and betting on lower prices could be liquidated, further amplifying the up move.

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