Professional cryptocurrency traders hold open positions in Bitcoin options for more than $ 900 million. The price of the most important cryptocurrency in these operations is $ 100,000 per unit, which makes it clear that they expect a new rise.
If betting that Bitcoin will hit $ 100,000 seems a bit daring, the optimism doesn’t stop there. Some operations even go up to USD $ 200,000. The curious thing about these bets is that the behavior of the pioneer cryptocurrency in the last month is one of the worst in its history.
The maturity that Bitcoin had shown since the end of last year 2020, seems to be diluted and is now a prey to price manipulation. Specifically, one of the most recent drops was caused by statements by Tesla CEO Elon Musk, who criticized the digital mining process. Since then, the price of Bitcoin has been unable to recover from the peak of $ 63,600 reached in mid-April.
What is the optimism of Bitcoin traders?
Anyone who believes in the current circumstances that the price of Bitcoin will reach $ 200 thousand per coin, would not be taken very seriously. However, in this case, they are professional Bitcoin traders. These go beyond words and in deeds they bet that the leading cryptocurrency will reach those limits.
It is difficult to know for sure what bettors are playing with their trading prices. However, one can speculate on some points behind this curious situation.
According to analysts of that medium, with operations at such prices, Bitcoin traders could be selling in September. “Most novice traders don’t realize that an investor could sell an ultra-bullish call option by September.” This, they explain “to improve profits in a short-term strategy, so it does not expect to take it to the expiration date,” they consider.
But to assure that this is the real intention of the professional bettors, it is still speculation. Although the assumptions cannot be ruled out, if one thing is certain it is that a downtrend of catastrophic levels does not seem a possibility.
Although the price of Bitcoin struggles to break the barrier of $ 40 thousand, traders bet options that exceed $ 100 thousand dollars per currency. Source: TradingView
More than 24 thousand open operations above USD $ 100,000
The most prominent aspect of the open interests on the part of traders in Bitcoin options is that they are not few. Thus, some 24,600 operations are currently open above $ 100,000 US dollars. In total, these are equivalent to $ 910 million in the same monetary denomination.
Whether or not the optimism of traders exists in the rise in the price of the most important of the cryptocurrencies, there is an implicit intention. In the real world of Bitcoin price quotation, the scenario looks totally different.
The cryptocurrency created by Satoshi Nakamoto continues to fight to break the resistance of $ 40 thousand. On several occasions it has been rejected up to its support of $ 32 thousand. Right now, the price of Bitcoin is $ 36,300.
Data to take into consideration
Open interests in Bitcoin options, exceed $ 900 million dollars. The amount of operations of traders with Bitcoin trading above $ 100,000, exceeds 24,600. Some analysts consider that there is no optimism in traders that the price of cryptocurrency will reach that threshold. This is likely to be a short-term strategy, in which bettors would not wait for the deadlines to expire, but would sell in September. The most important of the cryptocurrencies continues to struggle to break the resistance of the $ 40 thousand.