Traders Bet $2.5 Billion on Bitcoin Reaching $72,000 by July 31 as Fed Looms

2 articles · Updated · CoinDesk · Jul 18

$2.5 billion in notional bitcoin options changed hands on Deribit this week, with traders building a July 31 bull call spread that profits from a rise toward $72,000.
20,000 $70,000 calls were bought against 20,000 $72,000 calls sold, a structure that caps upside above $72,000 but lowers the cost and downside risk of the bullish wager.
Deribit said the size and repeated block trades point to institutional positioning, with the expiry set two days after the Fed's July 29 rate decision.
Fed funds futures still imply a 75%-80% chance of rates holding at 3.5%-3.75%, while bitcoin has already rebounded to about $64,000 from below $58,000 earlier this month.
The trade comes as easing June inflation reduced rate-hike fears, even though renewed U.S.-Iran strikes have lifted oil prices and clouded the inflation outlook again.