Markets
How Institutional Bets on December $100,000 Call Options Could Shape the Market
Despite the overnight spot price decline, the data suggests considerable institutional interest in the December 2024 $100,000 call options.
This indicates even stronger confidence in a year-end rally for the world’s largest cryptocurrency, especially as the likelihood of former U.S. President Donald Trump winning increases.
Considerable institutional interest
In his last updateCrypto trading firm QCP Capital said Bitcoin’s price has been resilient despite ongoing challenges such as Mt. Gox’s continued supply and declining stocks. This stability could indicate that the market has largely overcome its earlier concerns.
Perpetual funding rates have normalized, volatility is decreasing, and Bitcoin appears to have returned to its familiar $61,000-$71,000 trading zone, where it remained throughout the second quarter. In the short term, the asset’s spot price could continue to move within this band, especially with brokers holding “very long” positions on the $67,000 strike price from July 26.
However, the market is showing strong anticipation of a breakout ahead of the US elections. It is worth noting that institutional investors are showing considerable interest in the December $100,000 call options, reflecting a strong belief in a year-end rally, given the increasing odds of a Trump victory.
Public support for Trump within the tech industry has grown in recent months. His chosen running mate, Ohio Sen. J.D. Vance, not only brings experience as a venture capitalist, but is also a vocal proponent of Bitcoin and other cryptocurrencies.
Thanks to Trump’s new stance on Bitcoin, many influential figures in the tech industry, many with ties to crypto, have recently endorsed him or financially supported him through aligned political action committees. Among them: supporters They are Elon Musk, the Winklevoss twins and partners at one of Silicon Valley’s largest venture capital firms: Andreessen Horowitz.
Despite the Biden administration’s pragmatism in approving spot Ethereum ETFs, Trump remains a popular choice. In fact, Standard Chartered recently predicted that Bitcoin could surge to $150,000 if Trump wins the presidency.
Biden, 81, is also under increasing pressure from members of his own party to withdraw from the race after his disastrous debate with Trump, 78.
In a interview On Wednesday, Biden said he might reconsider his decision to stay in the race if a health scare arose. Additionally, a recent investigation According to AP NORC, most Democrats believe he should step aside in favor of someone else.
Will Biden’s potential victory spell trouble for US cryptocurrencies?
As support for Trump grows in crypto circles, it is worth noting that discussions about the future of the industry under different political leadership are intensifying.
Ethereum co-founder Vitalik Buterin recently urged Voters should exercise caution when casting their ballots for political candidates who claim to support digital assets without fully understanding the fundamentals and goals of the technology.
Buterin refrained from revealing the names of any political candidates in his post, but nonetheless drew criticism from Cardano’s Charles Hoskinson, who strongly criticized opposite The 30-year-old executive criticized the group’s stance and said Biden’s re-election could trigger the demise of the U.S. crypto industry.