Bitcoin Bulls Return: Traders Betting on $100K by Year-End

Despite a recent market downturn that wiped out over $1.1 billion in cryptocurrency positions, investors are doubling down on Bitcoin. Data from major exchanges indicates a growing appetite for Bitcoin options contracts with strike prices of $90,000 and $100,000, suggesting a bullish sentiment among traders.

According to Bloomberg, these contracts have seen a significant uptick in trading volume, with traders betting that Bitcoin could reach these lofty heights by the end of the year. The combined notional value of these contracts is estimated to be around $1 billion.

Yevgeniy Feldman, a broker at SwapGlobal, confirmed this bullish sentiment, noting a surge in buying pressure for both Bitcoin and Solana, especially on platforms like Coinbase. “Hedge funds and institutional investors have been actively buying Bitcoin and Solana call spreads over the counter,” Feldman said. “We’re seeing significant buy orders below the $49,000 level for Bitcoin.”

Call spreads involve buying and selling call options at different strike prices. By purchasing call spreads below the current market price, traders are positioning themselves to profit if Bitcoin’s price rises above the higher strike price.

The renewed interest in Bitcoin contracts suggests that many investors remain bullish on the cryptocurrency’s long-term prospects. However, it’s important to note that options markets can be highly volatile, and these predictions may not come to fruition.