Bitcoin Bulls Aim for $110,000 Before Key Options Expiry

Bitcoin bulls are optimistic about driving the price past $110,000 by May 30, coinciding with a $13.8 billion options expiry. Recent movements include an uptick in Bitcoin ETF inflows and a substantial imbalance in option positions, favouring bulls. Potential scenarios suggest that maintaining price levels above $109,000 could lead to significant profit opportunities for bullish strategies going forward, although various external economic factors could influence outcomes.

Bitcoin is currently approaching a significant juncture, with bulls eyeing the $110,000 mark before the largest monthly options expiry of 2025 on May 30. The combined total for this expiry stands at a whopping $13.8 billion, and traders are looking to capitalise on approximately $4.8 billion in call options. Recent movements in the market show Bitcoin bouncing back with a noteworthy 25% rise over the last month, leaving bears somewhat taken aback.

As it stands, open interest in Bitcoin put options, which are essentially bets on price declines, is around $6.5 billion. However, a staggering 95% of these positions rest below $109,000. This means that if Bitcoin holds its price levels, there will only be about $350 million in put options that hold significance come expiry time. It shows that bears may be in a precarious position if BTC stays buoyant.

On the flip side, Bitcoin call options, bets that the price will go up, total about $3.8 billion up to $109,000. Yet, not all of these holders are necessarily banking on Bitcoin’s rise; some might have used these options as a hedge against their existing positions. Recently, a strategy called the “short call” has gained traction, appealing to investors desiring fixed returns as long as Bitcoin remains above certain levels. Then there’s the “bull call spread” strategy, which looks to limit losses by capping gains above specific price points.

With Bitcoin ETF inflows showing signs of strength, the outlook for bears looks challenging. Indeed, if Bitcoin can maintain those critical $109,000 levels, bullish strategies are likely to pay off as the May options expiry approaches. Bears may attempt to influence BTC future markets to manage losses, but with a total open interest of $79 billion showing significant short positions, they could find themselves in a tight spot if prices soar past that $110,000 threshold.

Adding to the bulls’ optimism, net inflows into US spot Bitcoin ETFs hit $1.9 billion between May 20 and May 22. This illustrates strong demand at levels above $105,000. However, the bears might cling to the hope that a weaker macroeconomic backdrop could stir caution and diminish Bitcoin’s appeal.

Based on current trends, several scenarios may play out leading up to the expiry. For instance, if Bitcoin sits between $102k and $105k, the calls outweigh puts by $1.85 billion, showing a strong likelihood towards bullish profit. If BTC lands between $105k and $107k, the advantage shifts to the calls again by $2.65 billion. Should it range from $107k to $110k, calls would lead by $3.35 billion, while pushing past $110k to $114k could elevate that advantage to nearly $4.7 billion.

Driving Bitcoin above $110,000 could unlock new heights, setting a fresh all-time high. Yet, this bullish trend hinges heavily on external factors, including ongoing tariff discussions that have kept traders on their toes lately. Keep an eye on these developments—it’s a dynamic moment in the crypto space.

As always, this article is simply for informational purposes and should not be construed as investment advice. The opinions expressed certainly belong to the author and don’t reflect Cointelegraph’s views.