Following the last year , the industry saw some serious price breaks due to the excessive sell-off’s that in return led to the price of major coins crash by severe percentages, with Bitcoin [BTC] dropping below $5,600 USD for the primary time that year.
On the other hand, Options trading that permits traders to bet on whether or not the value of an asset can reach a definite level — has reportedly been gaining traction within the cryptocurrency area. Emmanuel Goh, a former JPMorgan Chase derivatives trader and founding father of crypto data firm Skew, told MarketWatch that daily transaction volume within the crypto options market has doubled since the start of the year.
Goh added, “We have a $10,000 USD Sept. expiry, that is presently priced with a five delta.” This suggests that, as per option traders, there’s a 5% probability that the price of Bitcoin [BTC] can reach to around $10k by Sept.
Goh conjointly noted that there’s even a $20k call option for the month of June, however the possibility of Bitcoin [BTC] striking that price is zero. A call option offers the holder the right to purchase an asset at a definite price by a definite time, however they’re not obligated to do so. He added that the $20k call was somewhat alike a “bullish trade that was made last year once the investors were still discussing on the short-run chance’s of making new highs.”
However, despite the slow recovery from the “Crypto Winter,” some consultants and traders are maintaining their optimistic predictions for the seminal cryptocurrency. Arthur Hayes, co-founder and chief operating officer of cryptocurrency platform ‘BitMEX’, recently ‘foretold‘ that the price of Bitcoin [BTC] is expected to touch to around $10k by this year’s end.
Amid last year’s crash, renowned capitalist ‘Tim Draper’ ‘aforesaid‘ that the price of Bitcoin [BTC] is expected to touch to around $250k by 2022. Moreover just recently, Draper also ‘foretold‘ that the standard paper money will become laughable and obsolete within the upcoming five years.