While bitcoin remains priced above the $60,000 range, some institutional investors are positioned for a positive price trajectory with call options betting on as much as $100,000 by the end of the year.
Despite recent pressures stemming from major bitcoin liquidations by the Mt. Gox distribution and sales by the German government, the bitcoin price remains remarkably resilient.
These developments indicate a strong appetite for large investments in cryptocurrencies, especially from experienced investors looking to cash in on potential year-end rallies.
$100,000 Call Option Signals
QCP Capital analysis highlights this trend, pointing to continued confidence among institutions despite the German government’s injection of nearly $50,000 btc into the market and the distribution of over $6 billion worth of bitcoin to Mt. Gox creditors.
These developments have significantly increased the available supply of bitcoin, but surprisingly have not dampened bullish market sentiment. Instead, they have catalyzed strategic interest in December call options at the $100,000 strike price, underscoring a strong institutional belief in bitcoin’s upside potential.
This update signals that amidst what is happening in the cryptocurrency market, institutional traders are not just passively watching, but are actively positioning themselves for what they believe will be a significant rally in the value of bitcoin.
The focus on December’s $100,000 call options is more than speculative; it reflects a calculated bet on bitcoin’s performance amid upcoming market catalysts, such as the US election. QCP Capital noted:
This indicates even stronger conviction for a year-end rally as the odds of a Trump victory increase.
bitcoin stabilizes in a familiar trading range
Additionally, QCP Capital revealed that with perpetual funding rates stabilizing and volatility reducing, bitcoin appears to be settling into a predictable trading range. This environment provides a relatively stable backdrop for institutions to place significant bets.
According to QCP Capital, the largest trades are centered on options with a strike price of $67,000, suggesting that market participants anticipate a move towards these levels before the end of the month.
This indicates that while the end of the year may be the focus, these institutional actors also see intermediate milestones.
QCP Capital highlighted in particular:
“Loser funding is back on track, volumes are coming down, and btc is back in the usual $61,000-$71,000 range it has traded in for the entire second quarter of this year. While spot could swing low here in the short term, especially with traders very long at the $67,000 strike on July 26, the market is definitely betting big on a breakout ahead of the US election.”
Meanwhile, at the time of writing, bitcoin is still holding its price above the $64,000 mark. Over the past 24 hours, the asset is up 2.6% and is trading at $65,331 at the time of writing.
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