Bitcoin could see a sharp increase in value as soon as it crosses the $36,000 mark, according to the sentiment of options market participants.
Options are contracts that offer the buyer the right, but not the obligation, to buy or sell an underlying asset at a predetermined price.
As the price of Bitcoin has risen, the demand for options has increased. According to data from Galaxy Digital and Amberdata, market makers have become profitable as a result of the trend.
If BTC rises to $35,750-$36,000, options dealers will have to purchase large quantities of spot bitcoin, said Alex Thorn, head of research at Galaxy Digital.
“And this could lead to an explosion in the price of Bitcoin,” the top manager added.
It was recently reported that several of the world’s largest market makers could provide liquidity for BlackRock’s long-awaited Bitcoin ETF if US regulators approve the product.
Matrixport experts believe that the fifth bull cycle of cryptocurrencies has begun and predict that Bitcoin will rise to $125,000 by the end of 2024.
