Bitcoin on the hunt for records: Analysts predict $500,000!

Bitcoin on the hunt for records: Analysts predict $500,000!

On Thursday, the crypto market showed a remarkable development that piqued the interest of investors and analysts alike. Bitcoin hit a new all-time high of $111,980 before falling back to $111,690. These 24-hour increases of over 4 percent have caused not only Bitcoin but also altcoins to rise sharply. The market demand for global crypto options is now showing an exponential increase.

Bitcoin options open interest (OI) has reached a record high of over $45.8 billion, accounting for nearly 84 percent of the digital asset options market. The OI for Ethereum options has also increased to over $8 billion. Overall, open interest for Bitcoin and Ether options exceeds $53.8 billion, the highest level since December 2024. Geoffrey Kendrick of Standard Chartered cites driving factors for the ongoing rally.

Market factors and forecasts

Kendrick highlights that market stimulants, particularly in the US, are fueling the Bitcoin rally. Analysts are optimistic and see a price target of $500,000 for Bitcoin during the term of US President Donald Trump. These forecasts are also based on quarterly 13F data from the SEC, which shows that institutions are now increasingly increasing their exposure to Bitcoin.

It is reported that capital from gold funds is increasingly being reallocated into Bitcoin products. While gold ETPs have lost over $3.6 billion in value, BTC ETFs have seen inflows of over $7.5 billion. Despite a slight $1 billion increase in hedge fund short selling, Bitcoin remains closely correlated with developments in the Treasury market. This increase in risks in the treasury market could further increase Bitcoin's appeal.

Options market and trading dynamics

A detailed analysis of the options market indicates that the open interest for Bitcoin options has reached the historical value of approximately $65 billion. This increase has been particularly driven by options linked to BlackRock's Spot Bitcoin ETF. Participation rates in the options market are similar to numbers last seen in November.

Current market data suggests that Bitcoin prices could potentially rally to a range between $116,000 and $120,000. On the Deribit exchange, traders have mostly favored call options, with $23 billion in call options outstanding compared to $13.9 billion in put options. In the last 30 days, Bitcoin price has risen 23 percent after falling as low as $74,000 last month.

The positive market sentiment and increased institutional participation suggest that the crypto world remains on a growth path. The combination of strong interest and the prospect of a rising Bitcoin price could further fuel interest in crypto assets.

You can find more information on this topic at The shareholder and Decrypt.