Bitcoin traders place $2.9 million bet above $82,000 after 25% rally

Options traders paid $2.9 million for call positions betting Bitcoin climbs above $82,000, after the token rose 25% in a week to $80,000, according to Laevitas.

The bullish wager targets early September expiry, Laevitas data shows, even as the broader derivatives market on Deribit continues to reflect caution through negative skew readings — a metric that measures the volatility premium of calls relative to puts.

The buying follows a sharp advance in BTC, which is trading near $80,000 after rising from roughly $64,000 a week earlier. The move higher is tied to the U.S. Treasury's bond-buyback announcement, continued inflows into spot Bitcoin ETFs and short liquidations that accelerated the rally. U.S. spot bitcoin ETFs logged $1.92 billion in net inflows last week, their largest weekly intake since October, when bitcoin reached its previous cycle peak.

Laevitas says Bitcoin's seven-day skew slipped to -5.17% from +2.36%, while Ether's skew fell to -12.15% from +3.41%. The pattern shows downside protection is being bid aggressively after a violent rally that stalled in the high $70,000 range, although Bitcoin has since pushed above $80,000 and the seven-day skew remains negative.

Fundstrat said the buying that followed last week's short squeeze suggests bitcoin's rally may be more durable than a tactical bounce, pointing to strong inflows into bitcoin and ether ETFs, increased trading volume, and the creation of more stablecoins used by investors to purchase cryptocurrencies.

Ether last traded 0.79% higher at $2,489.01, while XRP rose 1.1% to $1.49, up about 50% in the past seven days, according to CoinGecko data.

Options market activity further indicates rising investor confidence in the rally's endurance. Rather than focusing strictly on short-term price movements, traders are paying higher premiums for exposure to bitcoin gains further into the future.

Fundstrat also highlighted that the price increases occurred without new purchases from Strategy, the largest corporate holder of bitcoin. Strategy has not acquired additional bitcoin for two weeks, leaving potential future purchases as a possible additional driver alongside existing ETF demand.

The key question remains whether the price breakout will hold. Bitcoin experienced a prolonged downturn following its October high, and historical data from BTIG indicates a similar price surge in January 2023 initially faded before stabilizing around its 200-day moving average.

The $2.9 million call bet above $82,000 represents a concentrated wager on continued momentum, but the persistent negative skew across both BTC and ETH options suggests the market has not fully embraced the rally. If Bitcoin fails to hold above $80,000, the aggressive downside protection purchased in recent days could intensify selling pressure as put positions gain value.

This article is for informational purposes only and does not constitute investment advice.