Traders have bought $2.5 billion in notional bitcoin call spreads on Deribit, targeting $72,000 by July 31. The timing aligns with the Fed’s July 29 interest rate decision:
Bitcoin traders are betting billions that the cryptocurrency's spot price will climb to $72,000 by the month’s end, a timeline that lines up with the July Federal Reserve meeting:
According to Deribit, a total of 20,000 contracts of the $70,000 call expiring July 31 were purchased alongside a sale of 20,000 contracts of the $72,000 call of the same expiry. That amounts to $2.5 billion in notional value:
This is known as a bull call spread, a strategy initiated when expecting a moderate rise in the price of the underlying asset:
"This week we have seen some large blocks in BTC topside call spreads," Jean-David Péquignot, chief commercial officer at Deribit, told CoinDesk:
The timing is notable for two reasons. First, it suggests confidence in bitcoin's recent bounce to $64,000 from under $58,000 earlier this month:
