According to recent data, open interest in bitcoin futures and options has significantly increased over the past several weeks on a number of trading platforms. QCP Capital’s observations on Monday revealed a significant interest in long-term September and December bitcoin calls that target the high six-figure price ranges.
Confidence soars as Bitcoin wagers surpass $100,000.
March 14, 2024, was the day that bitcoin (BTC) reached its greatest price peak to date, reaching $73,794 per coin just last week. Significant trade volumes have been observed on trading platforms in the spot market, and the bitcoin futures market has also seen significant growth. Open interest in bitcoin futures is still at record highs, and volume in bitcoin options is also higher than in the past. In essence, a bitcoin futures contract locks participants into an agreed price to trade bitcoin at a future date and time, regardless of subsequent market prices.
Unlike futures, which are required to be traded, bitcoin options contracts provide purchasers the option—rather than the requirement—to trade bitcoin at a predetermined price by a given deadline. This offers buyers more flexibility and may also restrict their losses to the option’s premium cost. The value of bitcoin fell to lows of $64,500 on Monday after a report from QCP Capital’s broadcast channel said that the weekend was dominated by “both fear and greed.” The company noted a favorable comeback and highlighted investor enthusiasm to “buy the dip” despite this decline.
In addition, QCP’s newsletter highlighted the activity in the bitcoin options market, where it is now typical to see aggressive projections. The Singapore-based cryptocurrency company said on Monday, “We also continue to see buying interest in long-dated [September and December bitcoin] calls targeting $100-150,000.” According to QCP, Ethereum offers a different picture. The market is worried about ETH because of unfavorable perpetual contract funding rates and a negative skew in risk reversals, which suggests that traders may be taking short positions in expectation of a price drop.
QCP stated on Monday that “the market is very nervous about [ethereum’s] price cracking in spite of the continuing rally in alts.”
What is your opinion on the likelihood that long-term call options on bitcoin will reach $100–150,000? Please share your thoughts and opinions on this subject in the space provided for comments below.