Bitcoin’s momentum is building. Options expiry could be a short-term catalyst.
Bitcoin has rebounded strongly this week, gaining 1.3% over the past 24 hours and stabilizing above the key $107,000-$108,000 support zone.
The move comes as markets brace for a significant catalyst: the monthly options expiry on Friday, June 27.
Options Market Signals Bullish Momentum
Bitcoin is up 1.3% over the past 24 hours, holding above the critical $107,000 level, as the crypto market prepares for the expiry of over 10,000 BTC worth of monthly options contracts on Friday.
Data from Deribit indicates that traders are overwhelmingly betting on upside momentum, reflecting growing institutional and retail confidence in a sustained bull market.
The volume of call (buy) options far exceeds that of put (sell) options. This suggests the current Bitcoin options market heavily favors the bulls, pointing to strong potential for upward price movement, particularly if Bitcoin stays above $106,000 by the time of expiry.
According to analysts, the $106,000 level is critical. If Bitcoin remains above this threshold through Friday’s expiry, bulls may gain a meaningful advantage, setting the stage for a July rally, especially if ETF inflows continue at their current pace.
Meanwhile, most of the bearish options only turn profitable if Bitcoin drops below $101,000. With current prices hovering near $107,000, for the bears to win, they’d need the price to drop by 5% before Friday.
Catalysts Supporting the Bull Case
Several key developments continue to support the bullish outlook for Bitcoin. The total amount of BTC held on centralized exchanges has dropped to a multi-year low of 2.07 million BTC, indicating reduced selling pressure.
At the same time, institutional demand is rising, with Bitcoin ETFs recording consistent net inflows of over $120 billion for the third consecutive day, according to SoSoValue.
Corporate buying is also accelerating. Japanese company Metaplanet recently added 1,234 BTC to its holdings, now owning a total of 12,345 BTC valued at approximately $1.3 billion. This acquisition propels Metaplanet ahead of Tesla to become the seventh-largest corporate holder of Bitcoin.
On the macroeconomic front, markets are closely watching the June 27 inflation report. A modest increase in the Consumer Price Index (CPI) is expected, which could strengthen expectations that the Federal Reserve will hold off on further rate hikes. Such a scenario would likely favor risk assets, including Bitcoin.
Why This Matters
With bullish options sentiment, declining exchange reserves, growing institutional flows, and corporate accumulation all aligning, the stage appears set for a potential breakout for Bitcoin.
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