Battered Bitcoin Traders Bet on $120,000 Surge by March End
Bitcoin options traders are increasingly betting on a price increase to $120,000 by the end of March, despite recent volatility. $9.7 billion in options are set to expire this month. Analysts view the current market downturn as a potential precursor to a robust recovery, predicting Bitcoin could reach $200,000 or even $1 million in the future.
Bitcoin options traders are currently demonstrating significant bullish sentiment, with many betting that the cryptocurrency will surge to $120,000 by the end of March. This month is anticipated to be the largest in terms of options expiry for the year, with $9.7 billion in notional value scheduled to expire. Currently, Bitcoin is trading at $83,000, reflecting a decline of 25% since the height of the Trump rally, and a 12% drop in February.
Data from Deribit indicates that over two-thirds of options traders anticipate Bitcoin trading above $120,000 by March 28. In addition, there is strong demand for high-leverage calls despite market uncertainty, as highlighted by Sean Dawson, head of research at a prominent options trading protocol. He suggested that this trend points to traders seeking exposure to potential price increases amid significant market volatility.
Commentators note that external factors such as scandals, hacks, tariffs, and geopolitical issues have contributed to Bitcoin’s fall to its lowest level since November. Analysts from Bernstein and Standard Chartered remain optimistic, forecasting a potential rise to $200,000 over the next year, though they acknowledge that the situation may worsen before improvement occurs. Arthur Hayes, chief investment officer of Maelstrom, predicts that Bitcoin might drop as low as $70,000 before experiencing a rebound.
Hayes believes that following this anticipated decline, Bitcoin could reach an astonishing valuation of $1 million by the conclusion of President Trump’s presidency. Furthermore, a so-called max pain price of $85,000 is projected for Bitcoin options expiring on March 28, which indicates a critical price point affecting most traders’ positions.
In summary, Bitcoin options traders are expressing significant optimism regarding a price recovery, with many betting on a surge to $120,000 by March’s end. Current market conditions reflect substantial volatility, influenced by various external factors, yet analysts maintain an overall positive outlook for Bitcoin’s future valuation. The impending options expiry, alongside market movements, will be critical in determining the cryptocurrency’s trajectory in the coming weeks.
Original Source: www.dlnews.com
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