Bitcoin has once again captured the attention of the market, with predictions of it reaching $100,000 gaining credibility in the options market. The recent surge in Bitcoin’s price to over $70,000, an all-time high, represents a remarkable 70% increase in just seven weeks, setting the stage for the possibility of reaching the $100,000 milestone.
The options market has witnessed a notable rise in open interest, particularly for call options with strike prices at $80,000 and $100,000. Data from Amberdata shows a 12% surge in open interest for these strike prices within the last 24 hours, indicating growing bullish sentiment among traders.
Leo Mizuhara, the founder and CEO of Hashnote, a decentralized finance institutional asset management platform, foresees Bitcoin hitting an $80,000 valuation by the end of the month. Mizuhara attributes this potential surge to the anticipated influx of FOMO (Fear of Missing Out) investors, who are increasingly being drawn into the market by the accessibility of ETFs to retail customers.
Luke Nolan, a research associate at CoinShares, highlights that the current upward trajectory of Bitcoin’s price is primarily being driven by spot market activity, suggesting a healthier market environment with lower leverage compared to previous instances of price spikes.
Nonetheless, industry experts like Zaheer Ebtikar, founder of cryptocurrency fund Split Capital, caution against excessive optimism, noting that the market still carries significant risks due to high open interest and rampant speculation. Ebtikar emphasizes the need for caution during this period of heightened market activity, characterized by increased risk and volatility.
As a disclaimer, it is important to note that the information provided is not intended as investment advice. Investors should conduct thorough research and seek professional guidance when making financial decisions in the cryptocurrency space.