Has the $100,000 Door Opened in Bitcoin? Examining the Option Data
Bitcoin continues to make headlines as the speculation surrounding its price reaching $100,000 gains traction in the options market. With Bitcoin surpassing $70,000 and hitting an all-time high, experts believe that reaching the $100,000 mark is now within the realm of possibility.
The options market has seen a significant surge in open interest for call options with strike prices of $80,000 and $100,000. In the past 24 hours alone, there has been a notable increase of approximately 12% in open interest for these two strike prices, as reported by data compiled by Amberdata.
Leo Mizuhara, the founder and CEO of decentralized finance institutional asset management platform Hashnote, believes that Bitcoin could potentially reach a valuation of $80,000 by the end of the month. Mizuhara points to the increasing interest from FOMO (fear of missing out) investors, as well as the accessibility provided by ETFs, which have opened doors for more retail customers.
Luke Nolan, a research associate at crypto asset manager CoinShares, suggests that the current price rise of Bitcoin appears to be driven by spot trading, indicating a healthier market with lower leverage compared to earlier this week.
Nevertheless, the market is not without its risks. Zaheer Ebtikar, the founder of cryptocurrency fund Split Capital, cautions that the high open interest and rampant speculation in the market could pose challenges. Ebtikar emphasizes the current phase as the most challenging part of the crypto cycle, as an influx of hot money can push valuations even higher while also increasing risk and volatility.
As always, it is important to note that this information is not intended to serve as investment advice.