Bitcoin’s price surged to over $79,500 in Asian trading hours, indicating a bullish trend in the market. Traders are showing a strong interest in reaching the $80,000 mark, with futures premiums rising significantly. This surge in premiums suggests that traders are making more bullish bets on Bitcoin’s future price movement.
The $80,000 call option on Deribit, a popular cryptocurrency exchange, is gaining popularity among traders. This indicates that there is potential dealer hedging around the key level of $80,000. As Bitcoin continues its upward momentum, traders are looking to capitalize on the potential for further price increases through derivatives linked to the cryptocurrency.
Since Donald Trump’s victory in the U.S. election, Bitcoin has seen a 15% increase in its price, the highest weekly gain since February. This has raised hopes of regulatory clarity for the digital assets industry. The annualized rolling premium in three-month Bitcoin futures has surged to over 14%, reflecting a strong bias for bullish bets in the market.
The $80,000 strike BTC call option has seen open interest increase to over $1.6 billion, indicating significant upside potential for buyers beyond that level. Traders have been eagerly accumulating this call option in anticipation of a breakout before the end of the year. However, data shows that the $80,000 strike has the most negative gamma, which could lead to increased volatility once that price level is reached.
Negative gamma implies a net short exposure at a specific price level. The concentration of negative gamma at $80,000 suggests that liquidity providers could buy into a potential breakout above that level, further fueling bullish sentiment in the market. This increased volatility could present both opportunities and risks for traders as Bitcoin approaches the $80,000 mark.
Overall, the surge in futures premiums, the growing popularity of the $80,000 call option, and the potential increase in volatility at that price level all point to a bullish outlook for Bitcoin in the near term. Traders will be closely watching price movements and market dynamics as they position themselves to take advantage of potential opportunities in the cryptocurrency market.