Bitcoin Rally Gains Momentum as Institutions Increase Exposure via Options Market
Bitcoin's rally is accelerating, driven by increased institutional activity in Deribit's BTC options market.
- Deribit reported significant bullish flows in BTC options over the past week.
- Strong buying observed for call options at the $110,000 strike expiring in June and July.
- Calendar spreads involve long positions at the $140,000 strike and short positions at the $170,000 strike.
- Demand for the $110,000 call indicates expectations of price increases, potentially reaching $140,000.
- Long positions are being rolled from May expiries to July, at strikes between $110,000 and $115,000.
- BTC reached $104,000, a nearly 40% recovery from April lows below $75,000, influenced by U.S.-U.K. trade deal optimism and ETF inflows.
- Technical indicators suggest further gains for BTC.
Ether (ETH) has gained over 30%, rising to $2,411 within two days, indicating a bullish breakout.
- Increased interest in bullish ETH strategies on Deribit.
- Traders are purchasing June expiry calls at $2,400 and longer duration call spreads targeting $2,600-$2,800.