Bitcoin Traders Bet on $100,000 Call Options as Prices Surge Past $93,000

Bitcoin traders are jumping on the $100,000 call option at the Chicago Mercantile Exchange (CME), according to CF Benchmarks. You can see similar bullish activity happening over at Deribit.

Bitcoin (BTC) is on a roll. It just blasted past the $90,000 resistance level and hit a new high above $93,000. Traders on the CME are betting on prices reaching six figures.

CF Benchmarks reports that many traders are flocking to the $100,000 call option on the CME. This exchange is popular among institutional investors, and it seems they’re following the lead of those trading on Deribit. A call option gives buyers the right to purchase the asset at a set price before a specific date. This signals a bullish outlook for the market.

Thomas Erdösi, head of product at CF Benchmarks, noted, “According to our data, the 30-day constant maturity 25 delta skew has now breached the 5 vol threshold, which is close to a year-to-date high. This shows much greater demand for upside exposure.”

The 25 delta skew helps measure the pricing of call options compared to put options. A positive reading, like the current 5 vol threshold, means calls are more expensive than puts. This suggests traders expect BTC prices to rise even more.

There’s also growing interest in strikes above $100,000. This is clear from the increased implied volatility for these options, as shown by CF Benchmarks data. CME’s derivatives are linked to the CF Benchmarks Bitcoin Reference Rate – New York (BRRNY) variant.

This bullish sentiment matches what’s happening on Deribit, where traders have been buying the $100,000 call option since at least late September.

Interestingly, Bitcoin's rally seems unaffected by the ongoing rise in the dollar index. Since Donald Trump, who supports crypto, won the U.S. presidential election on November 5, BTC prices have jumped over 36%.