- Bitcoin recently hit a 2-year high of $50,000 and options traders are now targeting a new record price above $69,000
- Options activity shows traders expect Bitcoin to rise to between $52,000-$56,000 by end of March as call options at those strike prices are popular
- Factors driving Bitcoin’s renewed rally include a weaker dollar, less hawkish Fed expectations, and increasing institutional adoption
The options market shows crypto traders are targeting a new record price for Bitcoin after it reached a more than two-year high recently. Bitcoin, the largest cryptocurrency, hit $50,000 this week for the first time since January 2022. Now, options traders have set their sights even higher for the digital asset.
Options Activity Points to Higher Prices
The options market provides insight into where traders expect Bitcoin’s price to go next. Call options betting on Bitcoin rising to between $52,000 and $56,000 by the end of March are popular right now.
Previous Price Peak
Bitcoin hit an all-time high of nearly $69,000 in November 2021. It then plunged as low as $32,950 in January 2022 as broad risk assets sold off. The crypto has staged a strong comeback in recent weeks.
Macroeconomic Backdrop
Several factors are driving Bitcoin’s renewed rally. These include a weaker dollar, expectations for less aggressive interest rate hikes from the Federal Reserve, and renewed institutional adoption.
Looking Ahead
If Bitcoin keeps up its momentum, it could soon eclipse its previous record price. However, the crypto asset is known for its volatility, so the path higher may not be smooth.
