Optimism Reigns as Options Traders Bet on Bitcoin’s Rally to $120,000
Options traders are betting on a Bitcoin rally to $120,000 by March 28, with strong bullish sentiment despite recent market downturns. Analysts predict a quick recovery from Bitcoin’s recent decline below $88,000. Additionally, Ethereum’s market outlook remains optimistic, while Solana seems less favorable with bearish sentiment among investors.
Recent trends indicate a strong bullish sentiment among options traders regarding Bitcoin, with significant betting that it will surge to $120,000 by March 28. According to data from basedmoney.io, nearly 40% of trades are contingent on Bitcoin surpassing this threshold. Despite a significant market downturn, including a drop below $88,000 this week, analysts remain optimistic about a potential recovery.
Bitcoin has faced challenges since the inauguration of President Donald Trump on January 20, fluctuating between $95,000 and $99,000 before this week’s decline. Following Trump’s election, Bitcoin had soared to an impressive $105,000, influenced by investor expectations of crypto-friendly policies. Expert Noelle Acheson attributes the current lull to factors such as past crypto crashes and ongoing uncertainties within the market.
Many market experts believe this stagnation is merely a temporary pause in Bitcoin’s trajectory toward higher valuations. For instance, Nick Forster, co-founder of decentralized options exchange Derive, has projected a 12% chance for Bitcoin to hit $200,000 by the end of 2025. Furthermore, Standard Chartered’s Geoff Kendrick has forecasted that Bitcoin could reach $500,000 by the conclusion of Trump’s term, driven by increasing institutional investment.
Ethereum options also reflect a bullish sentiment, with data revealing that approximately two-thirds of options investors on Deribit anticipate upward movement in this cryptocurrency. However, Solana appears to be the exception, experiencing a bearish sentiment where over half of its options contracts are puts, indicating a lack of confidence among investors.
In conclusion, while Bitcoin has recently experienced a significant decline, the optimism expressed by options traders and analysts suggests a potential rebound. The market is closely watching developments as investors anticipate that Bitcoin may resume its upward trajectory, with ambitious price targets set for the coming months. As institutional interest grows, particularly in Bitcoin and Ethereum, the landscape for these cryptocurrencies could shift markedly despite current challenges.
Original Source: www.dlnews.com
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