Institutional Investments in $100K Bitcoin Options Could Impact Market Trends
Despite the dip in spot price overnight, data indicates significant institutional interest in December 2024 $100,000 calls, signaling a strong belief in a year-end rally for the leading cryptocurrency, especially with the potential for former US President Donald Trump’s return to power.
QCP Capital, a crypto trading firm, highlighted that Bitcoin’s price performance has remained robust despite ongoing challenges like the lingering Mt. Gox supply and diminishing equities. This resilience suggests that the market has largely overcome previous uncertainties. The normalization of perpetual funding rates, decreasing volatility, and Bitcoin’s return to its established trading range of $61,000 to $71,000, where it stayed during Q2, indicate a stable market. In the short term, the asset’s spot price may continue to fluctuate within this range, particularly as traders hold substantial positions in the July 26th $67,000 strike.
Anticipation for a market breakout is palpable as the US elections draw near. Notably, there is significant institutional interest in December $100,000 calls, reflecting a strong conviction in a year-end surge, driven by the increasing chances of a Trump victory.
Support for Trump within the tech sector has surged recently, with his chosen running mate, Ohio Senator J.D. Vance, bringing both venture capital experience and vocal support for Bitcoin and other cryptocurrencies. Influential tech personalities, many with crypto ties, have endorsed or financially backed Trump through aligned political action committees. Notable supporters include Elon Musk, the Winklevoss twins, and partners at a major Silicon Valley venture capital firm, Andreessen Horowitz.
While the Biden administration has shown pragmatism by approving spot Ethereum ETFs, Trump remains a favored candidate. Standard Chartered even forecasted a potential Bitcoin surge to $150,000 if Trump secures the presidency.
Biden, facing pressure from his own party following a lackluster debate with Trump, hinted at reconsidering his candidacy if a medical issue arises. A recent survey by AP NORC revealed that a majority of Democrats believe Biden should step aside for another candidate.
With increasing backing for Trump in crypto circles, discussions on the industry’s future under different political leaderships are gaining momentum. Ethereum co-founder Vitalik Buterin cautioned voters to carefully consider candidates who claim to support digital assets without a deep understanding of the technology’s nuances. This caution was met with opposition from Cardano’s Charles Hoskinson, who warned that a Biden victory could spell trouble for the US crypto sector.
