- Bitcoin approaches its record high near $110,000 following a 30% rise since April.
- Options data shows increased trader bets on Bitcoin reaching $300,000 by June.
- Call options with a $300,000 strike price are now among the most popular on major exchanges.
- Experts note current momentum is driven mainly by retail investors despite broader market risks.
- Analysts warn of possible price dips but see a low risk of a significant correction in the short term.
Bitcoin has surged sharply in recent weeks and is nearing its all-time high, climbing close to $110,000 after a rapid increase of more than 30% from its April low of $75,000. Investors and traders are driving demand, focusing on the potential for further gains in the major cryptocurrency.
Market data reveals growing optimism, especially among options traders. According to analytics from crypto firm Amberdata reported by Bloomberg, options to buy Bitcoin at $300,000 by June are now the second most popular contracts on the Deribit exchange, trailing only those with a strike price of $110,000. If prices reach $300,000, Bitcoin would reach a market capitalization of approximately $6 trillion.
Greg Magadini, director of derivatives at Amberdata, explained that many traders are buying call options for new record highs, a trend known as a "gamma squeeze" that can cause rapid moves in asset prices. “This is showing us that the market positioning is heating up in anticipation of new all-time highs and once in uncharted price territory, there’s no telling how high bitcoin can go.”
The rally follows gains in global stock markets, as some traders believe trade tensions started under the U.S. administration may be easing. Alex Kuptsikevich, chief market analyst at FxPro, noted that current price action is mainly influenced by retail investors. “Small players don’t care that the U.S. economy is slowing down, and the Federal Reserve is not going to cut rates.”
Some market watchers caution that despite the bullish run, there are risks of a sudden decline. Ruslan Lienkha, chief of markets at YouHodler, said, “The current price action appears to be a consolidation phase, marked by accumulation, potentially setting the stage for another leg higher that could lead to a new all-time high. While the risk of a downside correction cannot be ruled out, particularly if negative sentiment returns to the equity markets, the likelihood of such a scenario remains relatively low in the short to medium term. Overall, bitcoin is positioning itself for another upward move in the near future.”
Options, which are financial instruments giving traders the right to buy or sell an asset at a set price in the future, have become a key indicator of trader expectations. In this environment, options activity suggests strong belief in potential price increases, with some contracts targeting major gains by June.
Bitcoin has remained above the $100,000 mark for over 11 days. Current sentiment is mostly positive, though analysts acknowledge shifts in global markets could change the trend. The overall outlook from professionals points to continued volatility but generally expects the upward move to persist in the near term.
For additional context and data, see coverage by Bloomberg.
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