Bitcoin (BTC) options traders are increasingly positioning for the cryptocurrency to hit new record prices this month, with market data indicating a strong bullish sentiment. Observers have noted significant call buying activity, aiming to profit from a potential rally to between $74,000 and $80,000 by the end of June.
Digital asset hedge fund QCP highlighted this trend in a market update on Wednesday, stating, “Our desk saw strong bullish follow-through with significant call buying for June expiries, indicating positioning in the options market for a decisive break of $74,000 all-time highs this month.”
Options are derivative contracts that grant buyers the right to purchase or sell an asset at a specific price before or at a set expiration date. Call option buyers are bullish, betting on price increases, while put option buyers are bearish. If the underlying asset doesn’t reach the strike price, the option expires worthless.
Institutional crypto derivatives trading network Paradigm reported in a Telegram broadcast, “Options flow was clearly bullish today with big sizes on long BTC OTM [out of the money] call spreads in end June, and to a lower extent end July.”
Joshua Lim, co-founder of the crypto derivatives principal trading firm Arbelos Markets, observed “very concentrated call buying” on Tuesday. Approximately 1,100 contracts were bought for June 28 expiration call spreads within the $74,000-$80,000 range, amounting to roughly $80 million in notional demand.
Bitcoin has been consolidating for nearly three months since reaching an all-time high just below $74,000 in mid-March. After briefly dropping below $57,000 in early May, the cryptocurrency has steadily recovered and is now trading around $71,000, only a few percentage points away from new record prices.
Crypto investment services firm Matrixport noted in a Wednesday X post that bitcoin “appears to be ready to squeeze higher,” supported by significant inflows into U.S. spot bitcoin exchange-traded funds and rising open interest in the futures market. Matrixport also pointed out that a surge above the $72,000 level could trigger a short squeeze, with approximately $1.5 billion in leveraged futures contracts betting on lower prices potentially being liquidated, exacerbating the move higher.