- Bitcoin is up 14% in the last two weeks.
- Previously cautious options traders are piling into optimistic bets.
- Market analysts say Bitcoin has begun to decouple from stocks.
Bitcoin traders seem to have caught a fresh case of FOMO.
Data from crypto derivatives exchange Deribit shows Bitcoin options markets have flipped bullish almost overnight, with a frenzy of $95,000 calls for April.
Only two weeks ago, this same crowd was mostly bearish, hedging against market uncertainties with $70,000 bearish bets, or puts, for the month.
The bullish reversal isn’t only for April, as traders are stacking optimistic bets on other short-dated contracts.
June $110,000 calls have also exploded this week, with $437 million riding on that bet, as traders are pricing in a quicker recovery in which Bitcoin surpasses its all-time high of $108,000 achieved in January.
That’s another bullish shift that has occurred in the last two weeks. Previously, traders were mostly piling into $100,000 calls for contracts expiring in December.
What’s changed? On Thursday, Bitcoin traded above $93,000, up 14% in the last two weeks. During this time, there has been a cooling of trade-war tempers as President Donald Trump’s administration has signalled a possible de-escalation with China.
On Tuesday, BitMEX co-founder Arthur Hayes said that Bitcoin would go “up only” just like gold, which is up more than 40% in the last year to an all-time high of $3,300 per ounce.
Bitcoin and cryptocurrencies have largely tracked stocks, especially shares in US technology companies.
But, with Bitcoin rising as equities slumped during the tariff tiff, market analysts say that trend is eroding. Investors may even see Bitcoin as enthusiasts had always intended: as a hedge against volatility, sticky inflation, and macro curveballs.
This week, Grayscale research head Zach Pandl told DL News that Bitcoin is setting a solid foundation.
“Bitcoin is likely to move well beyond previous highs later in the year,” Pandl said.
Hayes previously told DL News that he predicts Bitcoin would reach $250,000 this year.
Osato Avan-Nomayo is our Nigeria-based DeFi correspondent. He covers DeFi and tech. To share tips or information about stories, please contact him at osato@dlnews.com.
