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Bitcoin price might hit $12k in June, based on the options market

By:
on Jan 13, 2020
Updated: Mar 11, 2020
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  • Bitcoin price in the first half of January 2020 saw an increase of 12.5%, which brought it above $8,100.
  • With Bitcoin halving approaching, many expect the coin's price to grow beyond $12k, as confirmed by the latest Bitcoin Options calls.
  • In order for many of the latest Bitcoin options contracts to pay off, the coin must go beyond $12,500 by June 25, indicating that expert traders are increasingly bullish.

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The year 2020 is off to a good start when it comes to Bitcoin’s price performance. The coin has grown by 12.5% over the course of the last two weeks, and many believe that this is only a start. According to experts, the options markets are showing available call options for a $12k strike price in June 2020, only one month after Bitcoin goes through block reward halving process.

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Bitcoin price spent this weekend just above the $8,000 mark, and multiple technical indicators are showing that another bullish period may be coming. It is also worth noting that the coin has been acting as a safe haven in recent weeks, as the geopolitical and economic tensions continued to rise between the US and Iran.

In addition to that, the coin’s third block
reward halving is approaching, and the hash rate has been hitting major highs.
In other words, BTC has been dropping a lot of hints that another bullish
period is approaching.

More platforms opting to offer
Bitcoin options trading

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However, one of the biggest indicators of the upcoming bull run is the recent announcement by the crypto derivatives exchange, FTX, which added Bitcoin options trading last Saturday, January 11th.

After the platform enabled options trading, it noted a $1 million-large volume within only 2 hours and over 2,000 contracts 12 hours later. During this time, there were numerous 12k calls, meaning that the contracts that could only be profitable if BTC exceeds $12k by June 25th.

https://twitter.com/ceterispar1bus/status/1216354138214162432

If the price ends up being below $12,430, the
bets would be lost, and the contracts would be worthless. This indicates
strong, bullish expectations by those who are willing to take the bet and who
predict that the asset would jump within a month after the halving takes place.

Also, apart from FTX, Bitcoin options contracts were also introduced by CME Group, further developing the trend.

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