Bitcoin's (BTC) rally is gaining momentum, with institutions stepping up their exposure to the leading cryptocurrency through Deribit's BTC options market.
Bitcoin (BTC) bulls are showing no signs of slowing down as the cryptocurrency continues its rally, with institutions stepping up their exposure through Deribit's BTC options market, the exchange said Friday.
"Panning out over just the last week shows a much bigger sign of institutional positioning on BTC," Deribit said on X.
The exchange noted "robust buying" of call options at the $110,000 strike expiring in June and July and calendar spreads - which involve a long position in one strike expiring earlier in the year and a short position in a higher strike expiring later in the year - with the $140,000 strike call expiring at the end of September and the $170,000 strike call expiring at the end of the year.
Such demand for the $110,000 strike call signals expectations for continued price increases in the coming weeks, with potential for an extended rise to at least $140,000. A call option gives the purchaser the right but not the obligation to buy the underlying asset at a predetermined price on or before a specific date. A call buyer is implicitly bullish on the market.
Deribit added that the bullish flows also included a roll over of long positions in May expiry to July expiries at strikes ranging from $110,000 to $115,000.
CoinDesk data showed BTC last rose 0.3% over the past 24 hours to $103,700 as of 07:05 ET (11:05 GMT) on Thursday. The world's largest cryptocurrency has recovered almost 40% from the early April lows below $75,000, amid optimism from the U.S.-U.K. trade deal and consistent inflows into the spot ETFs. Technical charts also point to more gains ahead.
At the same time, the rapid price appreciation in the past two days has also triggered interest in bullish plays on ether (ETH), which surged over 30% to $2,411 over two days, marking a bullish breakout on technical charts.
With that, traders were seen snapping up the June expiry calls at $2,400 and longer duration call spreads betting on gains up to $2,600-$2,800.
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