Bitcoin has risen 14% in two weeks, signalling a bullish trend in the options market. Previously bearish traders are now betting on upward movement, especially with significant $110,000 calls for June. Analysts suggest Bitcoin may be breaking away from stock correlations, strengthening its role as a hedge against market volatility. Grayscale’s Zach Pandl shares optimism about further price increases, while BitMEX’s Arthur Hayes has bold predictions of Bitcoin reaching $250,000 this year.
In a notable shift, Bitcoin has surged 14% in just two weeks, raising bullish sentiment among traders. Significantly, options traders who were once cautious are now opting for optimistic bets on the cryptocurrency. Market analysts highlight that Bitcoin seems to be breaking away from its correlations with stock movements, signalling a possible new trajectory.
Data from Deribit, a crypto derivatives exchange, reveals a dramatic turn toward bullishness. Just last week, traders were mostly bearish, hedging their risks with low $70,000 puts for the month. Now, there’s a clear frenzy of bets with several $95,000 calls for April appearing on the options market, suggesting confidence in a price rally.
Moreover, enthusiasm isn’t confined to April contracts—traders are now piling in calls that target $110,000 for June, with a staggering $437 million backing this bullish bet. Historically, traders focused on $100,000 calls slated for December, but a more immediate recognition of Bitcoin’s growing potential is evident.
What sparked this enthusiasm? As of Thursday, Bitcoin crossed the $93,000 mark, buoyed by recent tensions easing between the US and China regarding trade. Such developments seem to galvanise traders who may be viewing Bitcoin more as a hedge against market volatility, moving away from its previous tight correlations with tech stocks.
Adding to the bullish narrative, BitMEX co-founder Arthur Hayes recently commented on Bitcoin’s upward momentum, likening it to gold’s performance, which has surged over 40% to a record high of $3,300. Analysts now argue that Bitcoin is being increasingly perceived as a refuge against inflation and economic unpredictability, deviating from its past dependency on equity trends.
Grayscale’s research lead, Zach Pandl, expressed optimism, stating that Bitcoin is establishing a robust foundation and hinted at the likelihood of surpassing prior highs later this year. Hayes has ambitious predictions too, forecasting Bitcoin could even skyrocket to $250,000 by the year’s end.
Osato Avan-Nomayo is our correspondent focusing on DeFi from Nigeria. He covers developments in DeFi and technology. For inquiries or story tips, reach him at [email protected].
