Clearly, there is momentum building in the Bitcoin markets. So far this year, the asset has been up 12.5%. The options market is also indicating that there could be call options for a strike price of $12,000. This has happened just a month after the halving.
Bitcoin In The Weekend
Bitcoin has spent the past weekend consolidating above the psychological barrier of $8,000. The major technical indicators have begun to flip bullish. In addition to that, Bitcoin has also closed its largest green weekly candle in a period of three months.
Both the economic and geopolitical tensions are now mounting. With that, the narrative of safe-haven asset has come into play for the coin. There is also another halving that is expected. On top of that, there are new hash rate highs, and the difficulty adjustments. With all those in place, things have began to look bullish once again.
Bitcoin Option Calls For $12,000
A number of call options has been revealed for the high-priced Bitcoin. All these have happened after the halving. There is a slight difference between futures and options. The main difference is that in futures, the investor isn’t obliged to sell the contract when it expires.
The main aim is to ensure that these contracts are profitable to the market. To achieve this, the BTC price must be above the price of $12,430 by the 25th of June. The good news is that the investors are very confident about this.
Possible Lost Bet
A close that is below the price of $12,430 would not be the best for the market. it might lead to a lost bet since the contracts will be deemed worthless. A reliable source of data has shown that the sentiment is turning bullish for the BTC markets.
Even though the data could not be conclusive, it also shows that some sentiment is ready to bet in the crypto coin surging by over 50% from the current levels.
Big Day Today
Today is a big day for those in the market of the institutional products. This is the day that the CME Bitcoin options contracts are going live. Last year, there are a number of such launches. One of them is the Bakkt’s Bitcoin options launch that took place in September 2019.
These launches have been a bit overwhelming when it comes to the market reaction. This is what expected to take place today. The today’s event will introduce greater capital flexibilities and efficiencies when it comes to managing BTC price risk.
The products have been termed as highly anticipated by some of the industry experts. This is because CME is much larger as compared to Bakkt.