Due to tensions in the Middle East, Bitcoin fell below $100,000 in June. However, following positive news, it rose to $109,000.
After a very unstable June, investors turned to July for bullish sentiment.
At this point, one analyst said options traders were betting on July’s major bullish trends in Bitcoin and Ethereum.
Sean Dawson, head of research at Derivatives Exchange Derive.xyz, said in June the implicit volatility of Bitcoin (BTC) and Ethereum (ETH) has declined, leading investors to expect a rapid rally in July.
“Bitcoin and Ethereum experienced a significant decline on June 13th and 22nd, when tensions in the Middle East escalated.
However, temporary volatility spikes showed that the market was betting on a limited decline. And that’s exactly what happened. The decline was temporary, BTC, and ETH has recovered. ”
At this point, Dawson said the reduced volatility and limited declines in June motivated options investors to move upwards.
Dawson said Drive.xyz option data presents a relatively balanced outlook for Bitcoin, but shows Ethereum’s stronger bullish momentum.
Data shows that around 80% of July call options are over $3,000.
“Traders bet on big July in July with modest volatility and breaking up bullish positions
Today, all eyes are based on the Fed, macro data and even geopolitical developments.
ETH has a stronger story, but the options market for BTC is at a turning point.
“Nearly half of all public interest that expired on July 25th is between $130,000 and $135,000, with the other half going between $85,000 and $90,000, which is equivalent to a big BTC breakout.”
*This is not investment advice.