Bitcoin Soars to $126,000 as Bullish Options Market Eyes $140,000 Milestone

Bitcoin (BTC) has reached an unprecedented all-time high of $126,000, fueling a wave of optimism in the cryptocurrency market. Traders are increasingly targeting a $140,000 year-end price, as evidenced by surging activity in the options sector.

According to Bloomberg's report on the 6th, Deribit, a major cryptocurrency derivatives exchange, has observed concentrated open interest at the $140,000 strike price for Bitcoin call options set to expire in December. While many investors are riding this bullish momentum, others are hedging their positions by purchasing put options, anticipating potential corrections.

During New York’s trading session, Bitcoin hit $126,251, marking a remarkable year-to-date increase in value, more than doubling since the start of 2023. Following a weekend rally that broke above $125,000, market sentiment has remained decidedly optimistic.

A Rally Boosted by Macroeconomic Shifts

Bitcoin’s historic surge aligns with significant macroeconomic developments, particularly the ongoing U.S. federal government shutdown that began on October 1. With the release of key economic data delayed, investors have shifted focus to safe-haven assets like Bitcoin and gold, both of which have seen significant demand.

Gold prices have also rallied, inching toward the $4,000 per ounce mark, further underscoring a broader appetite for assets perceived as hedges against economic uncertainty.

Options Market Signals Sustained Uptrend, ETF Inflows Reinforce Demand

The options market is increasingly betting on a continued Bitcoin bull run. Amberdata’s Head of Derivatives, Greg Magadini, noted, “This rally has surpassed the expectations of many investors, with indications pointing to additional upside potential.”

October, often called “Uptober” due to Bitcoin’s historically strong performance during this month, has lived up to its reputation. Over the last decade, Bitcoin has averaged a 22.5% gain in October.

Demand for Bitcoin is not limited to the derivatives market; the spot market is also seeing considerable gains, buoyed by institutional inflows. Last week, $3.2 billion poured into 12 U.S.-based Bitcoin exchange-traded funds (ETFs), marking the second-largest weekly inflow since their inception in 2024. BlackRock’s Bitcoin ETF has broken records, with open interest surpassing $49.8 billion.

Derivatives Market Strengthens Bullish Outlook

The derivatives market has also hit a milestone, with open interest surging past $75 billion. Major exchanges such as Binance and CME dominate trading volume, reflecting robust market activity.

A key differentiator in this rally is the notably low liquidation ratio, which suggests stability in the upward momentum. In the past 24 hours, total liquidations amounted to just $283 million—significantly lower than the $2 billion daily liquidations observed at the end of September.

Kaiko researcher Adam McCarthy commented, “As long as there are no significant changes in macroeconomic conditions or policy, this bull market could extend through the end of 2023.”

Broader Crypto Market Sees Gains

Bitcoin’s rally has coincided with strong performance across the broader cryptocurrency market. Ethereum (ETH) has climbed to $4,700, while XRP (XRP) is trading above $3. This indicates a rising tide lifting multiple digital assets, spurred by growing confidence and inflows from institutional and retail investors alike.

For the moment, Bitcoin remains at the heart of the story, cementing its position as both a safe-haven asset and a cornerstone of the evolving financial landscape.

---

Stay updated with Block Media by following us on Google News or joining our Telegram channel for the latest cryptocurrency news.