Bitcoin Price Soars to $81.5K; $2.8 Billion Bet on $90K for BTC Price Target

Key Takeaways

1. Bitcoin Hits New High: Bitcoin price recently reached a record-breaking all-time high of nearly $81,500, reflecting a surge in market optimism fueled by recent pro-crypto election outcomes in the US.
2. Massive Futures Bets on $90K: Over $2.8 billion in open interest for Bitcoin futures with a $90,000 target has been recorded on the Deribit exchange, underscoring investor confidence in continued price growth.
3. Election Results Drive Optimism: Pro-crypto US candidates won in the recent elections, generating hope for favorable crypto policies that may support Bitcoin’s mainstream adoption and price gains.
4. Interest Rate Cuts Support Growth: The Fed’s recent interest rate cuts, aimed at easing monetary conditions, are expected to fuel Bitcoin’s rise, as cheaper borrowing rates increase market liquidity.
5. Weekend Volatility Expected: While optimism is high, experts caution that weekend trading could see high volatility due to limited liquidity, with price stabilization likely during the weekdays.

Bitcoin price recently achieved a historic milestone, reaching an all-time high of nearly $81,500, fueled by investor confidence and recent pro-crypto political developments. Futures trading premiums have risen sharply, with many investors projecting even greater gains for the world’s largest crypto. The aftermath of the US elections, which saw several pro-crypto candidates securing office, has significantly impacted market sentiment. This election outcome is being interpreted as a pivotal development for crypto adoption in the US, encouraging optimism among investors that Bitcoin may reach the $90,000 threshold and beyond.

BTC/USD | Source: TradingView

As part of this bullish trend, the open interest for Bitcoin to break above $90,000 has surged to over $2.8 billion on Deribit, one of the key derivatives exchanges in the crypto market. This figure indicates that investors are betting heavily on Bitcoin’s continued upward momentum, especially as the options market leans toward growth, with call options—bets on Bitcoin’s future price increase—trading at a premium over puts, which typically protect against declines. According to Vetle Lunde, head of research at K33 Research, this pattern reflects a robust belief in sustained market growth.

Read: Bitcoin price prediction

Surge in Bitcoin Futures Premiums

The jump in futures premiums, which measure the cost difference between a futures contract and the spot price of Bitcoin, highlights a spike in investor expectations. Following the US election, premiums for Bitcoin and Ethereum (ETH) on the CME (Chicago Mercantile Exchange) saw a sharp increase, reaching an average of 14%, compared to a pre-election average of around 7%. These premium levels, in the double digits, are unusual and suggest that institutional investors foresee substantial upside in Bitcoin and Ethereum prices. Lunde highlighted this premium surge as an “emphasis on bullish flows,” especially given the recent alignment of pro-crypto political voices and the growing interest in Bitcoin futures.

Deribit’s Growing Influence on Bitcoin Futures

Deribit has witnessed substantial growth in open interest for Bitcoin futures, a key indicator of investor sentiment about future price movement. Options contracts for Bitcoin, especially calls, have surged in popularity, illustrating a pronounced market tilt toward anticipating higher prices. The surge in Bitcoin’s open interest at Deribit suggests that market participants are positioning for further upside, with over $2.8 billion placed in open interest for the $90,000 price target.

The options and futures markets appear to be heavily weighted toward optimism, with the proportion of call options significantly outpacing puts. This situation often signals strong confidence in continued price momentum. Furthermore, with premiums above historical averages, investor appetite for crypto derivatives is high, driven by the belief that Bitcoin will benefit from broader adoption and favorable regulatory developments.

Political Influence and Rate Cuts Bolstering Sentiment

The recent US elections were pivotal, as several pro-crypto politicians won seats, stoking optimism around Bitcoin’s future in the US. These politicians have made promises to boost the country’s position as a global crypto leader, potentially establishing a “crypto capital” and exploring a national crypto stockpile with the US government’s seized Bitcoin assets. These pro-crypto moves align with the Federal Reserve’s recent decision to implement a second consecutive interest rate cut. Lower interest rates typically boost crypto markets, as investors are able to borrow more affordably, enhancing liquidity.

Additionally, President-elect Donald Trump has expressed a commitment to advance crypto-friendly policies, including the creation of a national reserve of digital assets. This potential dovetailing of political support and favorable economic policy could serve as a tailwind for Bitcoin, bolstering its prospects in the coming months. Some analysts speculate that if these promises materialize, Bitcoin could reach $100,000 before the presidential inauguration.

Increased Volatility Expected on Weekends

Despite the excitement surrounding Bitcoin’s rise, analysts caution that weekend trading could exhibit higher volatility due to thinner liquidity. Crypto markets on weekends often experience exaggerated moves since major trading platforms like CME and Bitcoin ETFs are not operational. This situation can lead to temporary price swings, which typically stabilize once traditional markets reopen.

Conclusion

Bitcoin’s new all-time high and the surge in futures premiums reflect a growing belief that recent political and economic developments will propel the crypto to new heights. With $2.8 billion in open interest betting on a $90,000 Bitcoin price target on Deribit, investors are signaling a bold outlook for continued gains. As pro-crypto policies from newly elected officials begin to unfold, Bitcoin may see unprecedented adoption and value increases, underscoring its role as a major player in the global financial system. For those optimistic about Bitcoin’s trajectory, this historic moment could mark the beginning of an even more ambitious journey toward mainstream acceptance.

Source: CNBC