Institutional Traders Anticipate Bitcoin Will Surpass $79,300 By November End
Institutional traders anticipate that Bitcoin will reach $79,300 by the end of November, as indicated by increased trading activity on the Chicago Mercantile Exchange (CME). Recent Bitcoin options trading volumes have surged ahead of the US presidential election.
Bitcoin To Rise Above $79,300?
Joshua Lim, co-founder of Arbelos Markets, noted significant trades on X. He stated, “CME Bitcoin options just experienced some of its largest volume days ever, ahead of the US election.”
Lim highlighted two major transactions from the past week: On October 25, traders bought 1,875 Bitcoin units of the 29-November $70,000 strike calls, paying $8.3 million in premiums. On October 29, another trade involved 3,050 Bitcoin units of the 29-November $85,000 strike calls, with a premium of $4.6 million. These trades indicate strong confidence in Bitcoin's potential rise, with high vega suggesting expected volatility and high delta values indicating substantial exposure to price movements.
The total notional value of these positions is approximately $350 million. Lim remarked that this is considerable even for Deribit, the largest crypto options exchange. The breakeven point for these trades is just below $79,300, requiring Bitcoin's price to exceed this level for profitability. This represents about a 16% increase from Bitcoin's price at the time of the trades.
Lim also commented on the bullish positioning into the election and the potential for increasing liquidity in crypto derivatives markets as the asset class matures. The timing of these trades coincides with the imminent US presidential election, which may lead to increased market volatility affecting Bitcoin and the broader crypto market. Many experts suggest that a Trump victory could positively influence BTC price.
At press time, Bitcoin traded at $72,382.
