After Bitcoin has reached a new record, rumors about $100,000 are becoming stronger. So, what do option data say?
Predictions that BTC will reach $100,000 are now being seriously considered in the options market.
On Friday, Bitcoin surpassed $70,000, an all-time high, marking an astonishing 70% increase in just seven weeks.
This price surge makes the $100,000 prediction seem feasible.
The options market has seen a significant increase in open interest, representing the number of outstanding contracts for call options with strike prices of $80,000 and $100,000.
Leo Mizuhara, the founder and CEO of Hashnote, a centralized financial asset management platform, believes the $80,000 valuation is not far away by the end of the month.
“I just think FOMO investors will arrive soon,” Mizuhara said, noting that the ETF has opened up space for more retail customers.
However, the market is not without risks. Zaheer Ebtikar, the founder of Split Capital, a cryptocurrency fund, warns, “Open interest is still very high and speculation is still prevalent.”
Ebtikar continues his statement as follows:
“This period is usually the most difficult phase of the cryptocurrency cycle because hot money flows in and pushes the valuation higher, but it also increases the risks and volatility.”
