There are more than 24 thousand open trades for a total value of between USD 100,000 and USD 200 thousand per unit. No one would believe that the price of Bitcoin could reach USD 200 thousand per unit due to the current circumstances.
Currently, professional cryptocurrency traders hold more than USD 900 million in open positions in Bitcoin options. In these trades, the price of the pioneering cryptocurrency is USD 100,000 per unit, which shows that they expect another rise.
Optimism is not limited to betting that Bitcoin will hit USD 100,000, which seems somewhat daring. Some traders even dare to predict that the cryptocurrency will reach up to USD 200,000. This situation is striking because the recent behavior of the Nakamoto cryptocurrency has been one of the worst in its history.
Since the end of 2020, the maturity that it had exhibited seems to have waned, becoming prey for price manipulation. Tesla CEO Elon Musk criticized the Bitcoin mining process, causing one of the most recent drops. Since then, the price of the cryptocurrency has not been able to reach its all-time high of USD 63,600 from mid-April.
Bitcoin Traders Have Reason to Be Optimistic
Nobody might take seriously someone who says that the price of Bitcoin will hit USD 200 thousand per coin. The current market circumstances suggest that it will not be possible to reach this new milestone. However, professional Bitcoin traders are those betting that the leading cryptocurrency will reach those limits.
There is no certainty as to why bettors play with their trading prices. However, it is possible to speculate on some aspects of this situation.
Trades at such prices lead analysts to predict that Bitcoin investors could be selling in September. “Most novice traders are unaware that an investor could sell an ultra-bullish call option by September.” They consider that he would do it “to improve profits in a short-term strategy. For that reason, he does not expect to carry it until the expiration date.”
It remains speculation to say that this is the real intention of professional bettors. However, it is not possible to dismiss the assumptions as a bearish trend of catastrophic levels does not seem a possibility.
There Are More than 24 Thousand Open Trades above USD 100,000
The most prominent thing about the Bitcoin options open interest is their very small number. Therefore, there are around 24,600 open trades above USD 100,000 right now.
Although traders are not optimistic about the rise in the price of the most relevant cryptocurrency, there is an implicit intention. In the real world of Bitcoin’s trading price, the scenario looks different.
Bitcoin is still struggling to break the USD 40,000 resistance after its most recent crash. On several occasions, it has returned to its support of USD 32 thousand. Bitcoin’s price is currently around USD 38,700 and its market capitalization is over USD 725 billion, according to CoinGecko.
By Alexander Salazar