Bitcoin may rise sharply after breaking $36,000
Options are contracts that offer the buyer the right, but not the obligation, to buy or sell an underlying asset at a predetermined price.
As the price of Bitcoin has risen, the demand for options has increased. According to data from Galaxy Digital and Amberdata, market makers have become profitable as a result of the trend.
If BTC rises to $35,750-$36,000, options dealers will have to purchase large quantities of spot bitcoin, said Alex Thorn, head of research at Galaxy Digital.
“And this could lead to an explosion in the price of Bitcoin,” the top manager added.
It was recently reported that several of the world's largest market makers could provide liquidity for BlackRock's long-awaited Bitcoin ETF if US regulators approve the product.