Bitcoin traders defy slump to bet on $100,000 year-end rally

full version at dlnews

Bitcoin traders are betting on an end-of-year price rally despite the cryptocurrency’s lacklustre June performance.

Traders are piling into long-term bullish positions that pay off when the price reaches $100,000, according to Georgi Koreli, co-founder and CEO of private trading protocol Hinkal.

Options at that price are the most popular bet for the December 27 expiry, which “implies strong bullishness for the long run,” he told DL News.

Out of the $144 million worth of calls at that expiration date, traders have poured over $16 million into ones at the $100,000 price.

Short-term bearishness

The trades signal optimism as the cryptocurrency drifts lower. Bitcoin has slid 10% since the start of June, dipping below $60,000 for the second time in recent months.

In the short-term, things look more dire.

There’s a cluster of bearish bets that pay out when Bitcoin reaches $60,000 by the end of June. That signals some traders are hedging against a downturn, said Ben Kurland, CEO at crypto trading and analytics platform DYOR.

Kurland told DL News said reasons for bearish sentiment include: Germany’s recent sales of confiscated Bitcoin; the repayment of billions in Bitcoin from the Mt. Gox bankruptcy proceedings; and speculation that Solana may faces regulatory scrutiny.

“These factors contribute to a cautious trading environment, tempering bullish sentiment with the risk of sudden market shifts,” he said.

The Crypto Fear and Greed Index, a way of measuring market sentiment, dropped to 30 on a scale of zero to 100 on Tuesday, its lowest reading all year. That suggests traders are more worried about the market.