Bitcoin’s unprecedented rally ride is leading more traders to consider much higher prices in 2021.
That’s also leading to some emerging choices in derivatives offered over digital brokerage platforms.
Omkar Godbole at Coindesk today covers target derivatives available at Deribit.
As background, analysts like Willie Woo have said that they figure Bitcoin will hit $100,000 by the end of 2021.
To that end, some options available at Deribit come with a $100,000 strike price. Some of the calls have been used, while Godbole reports the puts have not been a bite. These options have an expiration date in September of next year.
As Godbole points out, these call options are currently deep out of the money. Prices would have to rise at an amazing clip to get investors anywhere near a $100,000 strike price by next September. To people who don’t understand how bitcoin value works, this seems nigh impossible. In other words, how many equities have ever had that kind of rise in one year?
But Bitcoin is not in equity. It’s the front running cryptocurrency in an age where digital finance is taking off in a big way. Yes, the U.S. dollar’s still the world’s reserve currency for now, but as the philosophers would say, the only thing certain in life is change. Bitcoin is increasingly being seen as a safe haven, not just from fiat currencies, but from precious metals, too.
“I don’t think it’s that crazy to see a $100,000 bitcoin price by the end of 2021,” Anthony “The Pomp” Pompliano, a perennial BTC cheerleader, recently told reporters, according to contemporary news from Markets Insider. “And if we continue to get bigger and bigger buyers … if this kind of tips over and all of the sudden it becomes kind of a consensus trade, it wouldn’t surprise me to see something even higher than $100,000.”
Calling today’s economy “rocket fuel” for Bitcoin, Pompliano adds his voice to others describing how this could really be the “year of Bitcoin” coming up, and how intrepid Deribit options traders may be able to use those strike prices for gains.
