Options bet on 'Bitcoin surging to $120,000'! Investors optimistic about 'Trump's inauguration' sparking a celebration market

With President-elect Donald Trump set to be officially inaugurated on January 20, the cryptocurrency market is filled with a strong sense of optimism. Traders are betting that, after Trump officially takes office, Bitcoin is expected to repeatedly reach new highs, with unprecedented enthusiasm in the market.

According to Amberdata, over the weekend, a trader spent over $6 million on Deribit, an encryption currency exchange, buying call options with a strike price of $100,000 expiring on March 28.

Amberdata posted on the X community platform: "This transaction reflects the market's expectation that BTC will continue to refresh historical records in the months following Trump's inauguration."

Not only that, the demand for call options with a strike price of $120,000 is also soaring, making it the most popular option on the Deribit platform, with open interest nominal value as high as $1.52 billion, revealing market expectations for the future trend of BTC.

The Call Option gives the buyer the right to purchase an asset at a specified price in the future, thus obtaining attractive returns when the market rises. Recently, there has been a surge in demand for BTC Call Options, indicating that investors are positioning themselves in advance for the price surge.

As of the time of writing, the trading price of Bitcoin (BTC) is $99,050, up more than 8% from the low point of $91,384 on December 30th.

Can policy dividends ignite the BTC market?

Amberdata's Director of Derivatives, Greg Magadini, said, "Trump's inauguration day and the following days are expected to be a golden period for announcing major favorable policies, which could be important catalysts for driving up BTC."

CF Benchmarks, a encryption currency index provider, also agrees with the above view, and further points out that Paul Atkins, who is friendly to encryption currency, will take over as the chairman of the U.S. Securities and Exchange Commission (SEC), which is expected to reduce enforcement risks, promote innovation, and increase investor confidence.

CF Benchmarks said, "We expect that regulatory frameworks for the encryption currency industry are necessary, but if there are delays or changes in policy implementation, it may weaken market sentiment in the short term and trigger volatile market conditions."

Since Donald Trump's victory in November last year, market expectations for friendly regulatory policies have significantly increased, and the price of BTC has soared from $70,000 to a record high of $108,000.

However, this wave of momentum showed signs of fatigue at the end of December, possibly due to year-end profit-taking selling pressure and the Federal Reserve's hawkish interest rate hike expectations.

The article 'Option bet 'BTC surges to $120,000'! Investors are optimistic about the 'Trump inauguration' celebration market' was first published in 'Block Times'.