Bitcoin Options Market Expecting A Price of $100,000

Key Points:

• The top cryptocurrency’s surge past $70,000 fuels optimism in the Bitcoin options market, with $100,000 predictions gaining credibility.
• The rise is attributed to spot-driven demand, lower leverage, and the influx of retail investors through ETFs.
• Regulatory uncertainty looms as the SEC postpones its decision on Bitcoin ETFs amid Blackrock’s request for option approval.

According to Bloomberg, the top cryptocurrency’s meteoric rise to over $70,000 has sparked fresh optimism in the Bitcoin options market, with predictions of $100,000 now seeming increasingly plausible.

Read more: Bitcoin Price Prediction For 2024, 2025, 2026 and 2030: Super Crypto Bull Run

$100,000 Predictions Gain Momentum in Bitcoin Options Market

The cryptocurrency’s recent surge, marking a 70% increase over seven weeks, has led to a notable uptick in open interest for call options at strike prices of $80,000 and $100,000, suggesting growing investor confidence in further gains.

Leo Mizuhara, founder of Hashnote, sees $80,000 by month-end as realistic, attributing this momentum to the influx of FOMO (Fear of Missing Out) players, especially with the advent of ETFs expanding retail participation.

Unlike previous rallies fueled by derivatives, this surge appears more spot-driven, indicating a healthier market with reduced leverage, according to Luke Nolan of CoinShares. The annualized funding rate for Bitcoin futures on Binance, a gauge of market leverage, has moderated from the highs seen during Tuesday’s spike, suggesting a more sustainable uptrend.

SEC Postpones Decision on Bitcoin ETFs Amidst Blackrock’s Options Approval Request

However, elevated speculation and leverage remain concerns, with recent liquidations across derivatives markets underscoring the risks. Zaheer Ebtikar, the founder of Split Capital, warns of increased volatility as speculative capital floods in, even as record inflows into newly launched Bitcoin ETFs continue to buoy sentiment.

Yet, regulatory hurdles loom large, potentially tempering bullish enthusiasm. The SEC’s announcement postponing a decision on spot Bitcoin ETFs until April 24, amidst Blackrock’s request for options approval, introduces uncertainty into the market’s trajectory.

Despite these challenges, the overall sentiment remains bullish, supported by strong ETF inflows and a fundamentally healthier Bitcoin options market backdrop.