Bitcoin has surged to a record high in late New York trading. At 5.24pm (7.24am AEST) on bitstamp.net, the cryptocurrency was up 4.6 per cent, trading at $US116,341. This surge reflects a notable shift in market sentiment, particularly within the options market.
Chris Newhouse, director of research at DeFi trading firm Ergonia, highlighted the renewed bullish conviction evident in options trading. Ergonia is a decentralised finance (DeFi) trading firm that focuses on cryptocurrency and blockchain-based financial instruments, providing research and trading solutions. According to Newhouse, the open interest on the Deribit exchange, representing the number of outstanding contracts, is heavily concentrated around bitcoin call options with strike prices of $US115,000 and $US120,000.
Further analysis of longer-term options reveals elevated open interest at even higher strike prices. Options expiring in late September and December show significant activity at $US140,000 and $US150,000. This indicates a growing expectation among traders for continued price appreciation in the coming months. Bitcoin’s volatility and sensitivity to global economic factors mean that this price movement should be regarded carefully by investors.
