Bitcoin Prices Soar to New Heights on Inflows and Bullish Options Bets
Bitcoin's price jumped on Saturday, September 26, reaching USD 84,030.08, a 0.30% increase from the previous day. This comes as U.S. spot Bitcoin ETFs witnessed net inflows of USD 2.39 billion this week.
The surge in Bitcoin's price has sparked optimism among cryptocurrency experts, who predict that it could hit new highs. Despite traders assigning almost no chance of Bitcoin rescaling its peak above $126,000, the bitcoin options market has flipped bullish for the first time in 12 months, with many traders betting on a target of $80,000 or higher by December.
Open interest for the December 25 expiry is clustered at the $80,000 strike, with about $710 million in notional value, and at $100,000, with roughly $530 million. This renewed demand comes after institutional investors showed signs of renewed interest, with inflows reaching nearly $2 billion the week of August 17.
However, experts caution that a Federal Reserve rate decision this week could test the optimism surrounding Bitcoin's price. Joseph Edwards, an independent financial researcher, noted that any hike would likely put a damper on the recent rally.