Bitcoin trader purchases call options for $130,000 anticipating a rise in volatility | CoinDesk JAPAN

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Bitcoin trader predicts a rise in volatility and purchases a $130,000 call options

  • Bitcoin traders are increasing their purchases of high-priced call options on Deribit, indicating that they are anticipating a rise in price volatility.
  • If Bitcoin breaks through the resistance of 110,000 Dollars, it could lead to an increase in volatility, and some traders are taking positions anticipating a rise to 130,000 Dollars, QCP Capital noted.
  • The price of Bitcoin is stable between 100,000 Dollar and 110,000 Dollar, but upcoming events such as the release of the FRB minutes may impact volatility.

Bitcoin (BTC) traders are intensifying their pursuit of high-priced call options on Deribit, showing signs of preparing for a rise in price volatility.

"Volatility is still hovering near all-time lows, but if it clearly breaks through the $110,000 resistance, there is a possibility that volatility will rise again. Some large investors seem to be taking positions anticipating that very development," said QCP Capital, based in Singapore, in a market update.

"They continue to increase their exposure to the 130,000 Dollar call options expiring in September, while maintaining the 115,000 Dollar/140,000 Dollar call spread expiring in September, which supports a structurally bullish outlook for the third quarter," QCP added.

Call options give the buyer the right to purchase the underlying asset at a predetermined price until a specific date, but do not impose any obligation. The buyer of a call option implicitly suggests a bullish outlook on the market. In other words, the buyer of a call option with a strike price of 130,000 Dollars expects the spot price of Bitcoin to exceed that level.

The Bitcoin price has stagnated between 100,000 and 110,000 dollars for over 50 days, with sales from wallets holding Bitcoin for a long time offsetting inflows into ETFs (Exchange-Traded Funds).

On the 9th, the minutes from the June FOMC meeting are scheduled to be released, which could lead to a rise in volatility. Furthermore, it has been reported that the 90-day suspension of tariffs on many U.S. trading partners has been extended until August 1.

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