Bitcoin ETF: Binary Options traders bet on BTC price explosion over $ 100,000 by the end of the year
Bitcoin has skyrocketed in the last few weeks leading up to the launch of a futures ETF. But the bitcoin bulls aren’t fed up yet. You are betting that the BTC price will explode to over $ 100,000 by the end of the year.
BTC / USD rose 1.3% to $ 61,327 in 24-hour trading on Monday. At $ 62,623, the most important cryptocurrency by market capitalization just missed its record high of $ 64,778.
ProShares’ (NYSE: BITO) futures-focused exchange-traded fund will start trading on the NYSE on Tuesday under the ticker “BITO”.
Crypto investors consider an ETF to be an adequate means of luring new investors into the relatively young market for cryptocurrencies who are interested in the popular currency but prefer to invest in a simpler way.
The potential expansion of the crypto investor base has of course not escaped the Bitcoin bulls.
Current trading activity in the derivatives markets suggests that traders believe that the popular cryptocurrency will not only surpass its previous record high, but will also hit the 100,000 mark by the end of the year.
“The favored binary options contracts on Bitcoin are apparently call options with exercise prices above $ 100,000 … which will expire at the end of the year,” Glassnode said in its weekly on-chain report.
According to the data provided by the trading platfoms from the binary options companies listed here. The open interest in the call options exceeds that in the put options, which is in line with the overall bullish market sentiment.
Before the launch of the first Bitcoin futures ETF, a heated debate broke out about whether a futures ETF is the right investment instrument to increase the acceptance of cryptocurrencies.
Some argue that an exchange-traded Bitcoin futures fund does not directly own or hold Bitcoin, but rather futures contracts on Bitcoin, which is why it cannot optimally map the actual Bitcoin price, which could lead to underperformance.
However, Simeon Hyman, director of global investment strategies at ProShares, downplayed these concerns.
“Many experts say the futures market is a better place to find prices,” Hyman said in an interview with CNBC on Tuesday. “Not only is the CME futures market a regulated place, more is traded there than on the largest US crypto exchange.”
In order for the bull market in the crypto market to continue, however, there is a group of investors who have to hold onto their crypto currencies: the long-term owners.
These long-term owners (LTH) are starting to itch in their fingers to take their winnings off the table. With around 98% of BTC still being held with an unrealized profit, a significant surge in traders realizing their profits could take the wind out of the sails of Bitcoin, at least for a short time.
“There has been a slight weakening in the net change in LTH’s position over the past week, suggesting some profit-taking in the wake of the $ 60,000 price rally,” Glassnode said in his report.
At the moment, however, the demand is great enough.
“Although it has now been confirmed that profitable coins are on the move, these metrics suggest that the current demand is sufficient to absorb any selling pressure,” continued Glassnode.