- Many trades suggest that Bitcoin could soar to $55,000 by the end of June.
- Analysts say demand from ETFs will continue to outstrip Bitcoin’s supply, pushing prices up in time for Bitcoin’s asset halving event in April.
Traders expect Bitcoin to rise above $55,000 by June.
Options contracts, which provide a profit if Bitcoin reaches a price range of approximately $55,000 to $57,000, are among the most popular among traders. This shows that there is a growing consensus for Bitcoin to rise. These contracts are scheduled to expire at the end of the first half.
The bet comes as Bitcoin’s price has fallen 12% from its high of $49,000 in early January, and other analysts predict that the swings could be short-lived. I agree with List’s opinion.
Several factors can cause Bitcoin to soar.
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This includes continued bullishness on US Bitcoin spot-traded funds. The Federal Reserve is expected to cut interest rates. Turmoil in China’s stock market. And in the upcoming “halving” event, the amount of new Bitcoin entering the market will be cut in half.
Analysts at digital asset brokerage K33 said in a separate note that bullish options bets and call prices have risen “as the market maintains a positive six-month outlook,” suggesting an increase in demand. He said he is doing so.
Options allow traders to pay an immediate fee for the right to decide to buy or sell an asset at a set price in the future.
At CME, contracts that payoff when Bitcoin hits $57,000 are the most popular, with a potential total payoff of around $17 million.
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At Derebit, a contract that pays when Bitcoin reaches $55,000 was most sought after by traders and could pay out $154 million.
Meanwhile, short-term option pricing shows investors are hedging their bets, K33 analysts said.
They said the price of betting on Bitcoin’s short-term price movements is now level, reflecting the absence of key factors.
said Jamie Coutts, a freelance blockchain strategist who previously worked at Bloomberg Intelligence. DL News Until the US spot Bitcoin ETF was approved on January 10, Bitcoin was reportedly experiencing a “hangover.”
From September to December, Bitcoin option contracts reached a record $18 billion, doubling leverage in what Coutts called “unusual” market action. Open interest has since fallen to $10 billion, according to the data.
This “reveals the underlying demand and supply dynamics,” Coutts said.
“If demand for the ETF continues at its current rate (about twice the daily supply), the price of Bitcoin should rise above $49,000 as we approach the halving,” Coutts said. .
Sebastian Sinclair is DL News’ markets correspondent. Any tips? Please contact Cebu: firstname.lastname@example.org.