Institutional traders believe that Bitcoin can hit $75k and more in the upcoming months.
Coindesk cites a relevant firm and says, “On Monday, some block traders took bull call spreads at $75,000 and $100,000 strike call options expiring on May 28 via over-the-counter (OTC) trading and settlement desk Paradigm,” Swiss-based options analytics platform Laevitas told CoinDesk.
The same platform noted that “These could be institutions betting that bitcoin will hit at least $75,000 by summer.”
According to the same online publication, a call option gives the holder the right but not the obligation to buy the underlying asset at a predetermined price on or before a specific date.
“A bull call spread involves buying call options at/below or above the spot market price and selling an equal number of calls with the same expiry at a higher strike price,” they also note.
It’s been also revealed that institutions tend to trade via OTC desks in order to avoid influencing spot market prices. Trades that are facilitated by Paradigm are automatically executed, margined, and cleared at Deribit which is the world’s largest crypto options exchange by trading volume.
New Bitcoin predictions
At the moment of writing this article, BTC is trading in the green, and the king coin managed to hit $50k again. BTC is priced at $50,954.24.
The online publication the Daily Hodl notes that a widely-followed trader and crypto analyst believes Bitcoin will ascend to a new high of $100,000 – more than that, he believes that this will happen sooner than most investors think.
Bitcoin could hit $100k in April
Kaleo said on Twitter that the correction across the crypto markets is likely over.
Sale ends today.
Buy more now.
— K A L E O (@CryptoKaleo) February 28, 2021
“Sale ends today. Buy more now…Good morning and happy Monday. Bitcoin higher. Alts higher. Stonks higher. Bears trembling.”