Institutions Investing in Bitcoin: Price Expectation at $50,000

The Bitcoin (BTC) options market reached a record volume of 20.5 billion dollars on December 7th. This increase is believed to be an indicator of the growing interest of institutional investors in the cryptocurrency market.

Bitcoin options reached $20.5 billion on December 7th. This growth indicates that the recent increase in Bitcoin’s price is attracting not only individual investors but also institutional investors to the cryptocurrency ecosystem.

Option contracts provide the right to buy or sell cryptocurrency at a predetermined price, without the obligation to carry out the transaction.

Deribit, a giant in the Bitcoin options market, holds an overwhelming 90% market share. The exchange is managing open interests worth a total of $2.05 billion, set to expire on January 26th. However, as the expiration date approaches, a decrease in the value of these options is also possible.

$50,000 Expectation Dominates

On the other hand, one of the biggest expectations in the Bitcoin market is the approval of spot exchange-traded funds (ETFs). This expectation has brought back into focus some bullish-oriented options that were previously overlooked in the market. In particular, the part of the $50,000 call options traded on Deribit, totaling $250 million, shows significant potential growth when compared to the current Bitcoin price of $44,000.

Analysts and industry experts see a high probability of ETF applications being approved by 2024. If regulatory bodies give the green light to spot ETFs, the value of these options could significantly increase. However, it remains unknown whether investors who have purchased these $50,000 call options intend to use them for bullish strategies.

Source: Cointelegraph

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