Options traders are bullish on %Bitcoin (CRYPTO: $BTC) and betting that the price of the largest cryptocurrency will reach $70,000 U.S. within a month.
The latest data shows options traders are anticipating that the current rally in Bitcoin will continue after the U.S. Federal Reserve lowered interest rates by 50-basis points.
Data shows a big uptick in purchases of Bitcoin options contracts with an expiry date of Oct. 25 and a strike price of $70,000 U.S.
In the last 48 hours, more than $130 million U.S. of such contracts have been purchased, with contract sales accelerating after the Fed’s rate cut was announced.
Analysts say that traders are increasingly bullish on cryptocurrencies as lower interest rates prompt investors to move back into riskier assets.
The bullish outlook comes as Bitcoin’s price rose more than 5% after the U.S. central bank cut interest rates and reached $63,500 U.S., its highest level in three months.
Other cryptocurrencies rallied hard on news of lower interest rates, with %Solana (CRYPTO: $SOL) and Bitcoin Cash (BCH) each jumping 10% higher.
The growing interest in Bitcoin also comes as we near the end of September, which has historically been the worst month for crypto’s performance.
The final quarter of the calendar year – October through December – has been historically the best time for Bitcoin and cryptocurrencies to rally, contributing to the rise in bullish sentiment among options traders.
Bitcoin is currently up 43% on the year and trading at $63,100 U.S.
