Bitcoin’s (BTC) rally is gaining momentum, with institutions stepping up their exposure to the leading cryptocurrency through Deribit’s BTC options market.
Recent developments indicate a significant shift in institutional positioning on BTC. According to Deribit, there has been a marked increase in bullish flows within the BTC options market over the last week.
The exchange has witnessed robust buying activity for call options at the $110,000 strike price, set to expire in June and July. Notably, there are also calendar spreads that involve a long position in the $140,000 strike call set for the end of September, paired with a short position in the $170,000 strike call due at the end of the year.
The heightened demand for the $110,000 strike call option suggests that market participants are anticipating a continued price rise in the forthcoming weeks, with prospects of reaching at least $140,000.
It’s essential to understand that a call option provides the purchaser with the right, but not the obligation, to buy the underlying asset at a predetermined price on or before a specific date. This inclination towards call options indicates a bullish sentiment within the market.
Moreover, bullish flows include rolling over long positions from May expiries to July, utilizing strike prices ranging from $110,000 to $115,000, further demonstrating the bullish outlook.
Market intelligence from CoinDesk indicates that BTC reached a peak of $104,000 on Thursday, illustrating a dramatic recovery of nearly 40% from the early April lows of under $75,000. This upward movement can be attributed to optimism generated by the U.S.-U.K. trade deal and consistent flows into spot ETFs. Technical analysis suggests that further gains are likely to follow.
In addition to BTC, Ether—the native token of Ethereum’s blockchain—has also seen remarkable growth, surging over 30% to $2,411 within just two days. This bullish breakout has sparked significant interest in ETH positions on Deribit, with traders actively purchasing June expiry calls at $2,400, as well as engaging in longer-duration call spreads betting on potential price escalations up to $2,600-$2,800.
As the cryptocurrency market experiences increased institutional engagement, both Bitcoin and Ethereum appear poised for continued growth, attracting attention from investors and traders alike.
