Traders Bet Big on $95,000 Bitcoin Target, Risk Losing Millions

A high-stakes options bet on Bitcoin's price has left traders wondering about the strategy behind it. A trader has wagered $3.17 million that Bitcoin will reach a specific price target by October 30, but there's a catch: if the price goes above or below this level, they could lose their entire investment.

The bet is based on a long call butterfly options strategy, which involves buying and selling call options with different strike prices. This setup targets a central price of $95,000, with maximum profits expected at this level.

However, if the price surges to $100,000 or beyond, the trader could see their gains reduced significantly. The outcome depends on the settlement price at expiration, not just the temporary price movement.