In the past week, Bitcoin surpassed the $50,000 mark. According to some traders, the signs point to further gains. Using options, they are speculating on both rising and falling prices, but for Bitcoin, the focus is mostly on upward movements.
On the largest cryptocurrency exchange for such trades, Deribit, projections are set at $65,000, $75,000, and even $100,000 by the end of the year. For the end of March 2024, many traders are betting on the range of $60,000 to $75,000. By December 2024, there are over 1,000 options at $70,000 and nearly the same number at $100,000, totaling $120 million in value.
Interestingly, during the month of the halving in April 2024, the majority of options are positioned at $50,000, with around 2,200 options valued at $116 million.
As of the latest update at 9:00 AM, Bitcoin is trading at approximately $52,000, with a market capitalization of around one trillion US dollars. This marks the cryptocurrency’s highest value in two years. Over the course of the week, BTC saw an increase of approximately 12 percent.
In 2023, Bitcoin surged by 230 percent in anticipation of the approval of the Bitcoin Spot ETF, becoming one of the best-performing assets of the year. The Bitcoin Spot ETF allows institutional investors, including heavyweights like BlackRock and Fidelity, to purchase the cryptocurrency through asset managers.
Following a slow start, the BTC Spot ETF is now considered one of the most successful in financial history. BlackRock, the world’s largest asset manager, is making record purchases, acquiring around 100,000 BTC within a month, totaling over five billion US dollars.
