[Analysis] "Options Market Sees Increased Bets on Bitcoin (BTC) Reaching $120,000... Optimism Post-Inauguration"

Analysis indicates that traders in the options market are increasingly betting on the bullish trend of Bitcoin (BTC).

On the 6th, cryptocurrency-focused media CoinDesk cited data from the cryptocurrency derivatives exchange Deribit, stating, "Call options with strike prices of $100,000 and $120,000 are becoming active again in the options market," and added, "Bitcoin is expected to reach an all-time high following Trump's inauguration."

The media further explained, "Call option contracts with a strike price of $120,000 are gaining the most popularity on Deribit," noting that "the open interest for these contracts stands at $1.52 billion." The expiration date for these options is set for March 28.

Amberdata analyzed on X (formerly Twitter), "Bitcoin is expected to rewrite its all-time high within a few months after Trump's official inauguration."

Greg Magadini, Director of Derivatives at Amberdata, commented, "During and shortly after Trump's inauguration, catalysts such as policies that could drive Bitcoin higher might be announced," but also warned, "While we expect a framework for the cryptocurrency industry to be established, short-term volatility could increase if optimism weakens due to policy changes."

Meanwhile, a call option is the right to buy a specific underlying asset at a predetermined strike price. If the market price of the underlying asset is higher than the predetermined strike price at expiration, the call option buyer can exercise the option to profit from the difference.