The main drive could be as NASDAQ recently registered Bitcoin Spot ETF options for BlackRock ($IBIT). On their first day of trading, the options recorded an estimated trading volume of nearly $1.9 billion, with 354,000 contracts traded, including 289,000 call options and 65,000 put options. Nine of the ten most traded options were bets on a price increase. The most traded option was a call option expiring in January 2025. This pushed Bitcoin’s price to reach a historic high of $94,032.
Not just that, Grayscale plans to launch options trading for GBTC and Mini BTC tomorrow, November 21, 2024, and Fidelity's Wise Origin Bitcoin Fund (FBTC) is also expected to list its options soon.
On the ETF side, after showing negative net flows last week, the net inflows turned positive on Monday and Tuesday. Data also shows that the number of Bitcoins available on exchanges has dropped to its lowest level. This raises the possibility of a supply shock in the next one to two months if institutional buying remains strong, potentially driving Bitcoin prices to soar even higher.
From a technical perspective, Bitcoin reached its all-time high this morning at $94,000 before pulling back to trade within the $91,000-$93,000 range. Overall, the current price structure leans towards accumulation or a buy position. As previously mentioned, we will stick with the upward trend until Trump takes office. Therefore, look for buying opportunities during pullbacks. Further updates will be provided if the price drops below the $85,000 level.
The possibility of Bitcoin reaching $100,000 could be real soon. However, based on historical trends, keep in mind that the crypto market tends to be quieter towards the end of the year. During this period, investment funds often shift toward traditional markets.
This article is for informational purposes only and not intended as investment or financial advice. It contains opinions and speculations that are subject to change without notice.
The author and publisher disclaim any liability for decisions made based on the content of this article. Readers are advised to conduct their own research and consult a financial advisor before making investment decisions.
