Bitcoin is once again making headlines, with predictions of reaching $100,000 gaining credibility in the options market.
Having surged to a record-breaking $70,000 on Friday, marking an impressive 70% surge in just seven weeks, Bitcoin’s remarkable ascent has fueled discussions about the feasibility of the $100,000 target. Notably, the options market has witnessed a substantial uptick in open interest, specifically for call options with strike prices set at $80,000 and $100,000. Data from Amberdata reveals a notable 12% surge in open interest for these strike prices in the past 24 hours.
Leo Mizuhara, the founder and CEO of Hashnote, a decentralized finance institutional asset management platform, anticipates that an $80,000 valuation by month-end is within reach. He attributes this potential surge to the imminent arrival of FOMO (Fear of Missing Out) investors and the increased accessibility facilitated by ETFs, which have broadened the market to more retail customers.
Luke Nolan, a research associate at CoinShares, a crypto asset manager, notes that Bitcoin’s current price surge seems to be driven more by spot market dynamics, indicating a healthier market with reduced leverage compared to previous periods.
However, the market is not without its risks. Zaheer Ebtikar, founder of cryptocurrency fund Split Capital, points out that while open interest remains high, speculation is still rampant. Ebtikar warns of the challenges in the current crypto cycle, where increased inflow of speculative capital can drive valuations higher but simultaneously elevate risks and volatility.
Disclaimer: This information is not intended as investment advice.