Has the $100,000 Door Opened in Bitcoin? Here is the Option Data

Bitcoin is once again on the agenda. Predictions that BTC will reach $ 100,000 are now being taken seriously in the options market.

On Friday, Bitcoin rose above $70,000, an all-time high, marking a stunning 70% increase in just seven weeks. This increase in value made the $100,000 estimate possible.

The options market saw a significant increase in open interest, which represents the number of contracts outstanding for call options with a strike price of $80,000 and $100,000. According to data compiled by Amberdata, there has been a jump of approximately 12% in the last 24 hours for these two strike prices.

Leo Mizuhara, founder and CEO of Hashnote, a decentralized finance institutional asset management platform, believes an $80,000 valuation by the end of the month is not far off. “I just think FOMO investors will come soon. ETFs have opened up the space to even more retail customers,” says Mizuhara.

According to Luke Nolan, a research associate at crypto asset manager CoinShares, Bitcoin’s current price rise appears to be more spot-driven and points to a healthier market with lower leverage compared to Tuesday.

However, the market is not without risks. “Open interest is still very high and there is still rampant speculation,” warned Zaheer Ebtikar, founder of cryptocurrency fund Split Capital. Ebtikar continued his words as follows:

“This period is often the hardest part of the crypto cycle because hotter money comes in and pushes valuations further, but also increases risk and volatility.”

*This is not investment advice.

Source