Traders bet big on Bitcoin, expect $80k by next month

Traders bet big on Bitcoin, expect $80k by next month

Many Bitcoin traders are bullish on the price of the leading cryptocurrency. According to data compiled by analytics firm Glassnode, $80,000 is the most crowded options trade in April, with some traders betting on Bitcoin reaching $120,000. At the lower end of the scale, some traders expected Bitcoin to return to $40,000.

It is worth clarifying that many of these options contracts may not be speculative bets but a hedge of future positions or margins. The traders may not also be expecting a price of $80,000. Instead, they may be betting on the price of Bitcoin going up, and as a result, their options contract price will rise.

For the uninitiated, an options contract is a right, but not an obligation, to buy an asset at a certain price. This right is purchased at a premium, which is lost regardless of the price movement.

About 446 options were purchased for $80,000. Traders will be required to pay $1,000 for the $80k option. This is up by $300 from just a few days ago.

Generally speaking, Bitcoin has continued to welcome a lot of institutional investors and mainstream adoption. Tesla is the latest to announce that it will start accepting Bitcoin payments for its cars.

Subscribe to BTC Peers

Don’t miss out on the latest issues. Sign up now to get access to the library of members-only issues.