Traders Anticipate Bitcoin Rally to Record Highs Following Trump Inauguration
Bitcoin (BTC) traders are positioning themselves for a potential surge to record highs after President-elect Donald Trump officially takes office on January 20.
On Saturday, a trader on the Deribit crypto exchange invested over $6 million in $100,000 strike call options set to expire on March 28, according to data from Amberdata.
“This significant trade signals confidence that Bitcoin will surpass previous all-time highs within months of Trump’s inauguration,” Amberdata noted in a post on X.
Market activity also indicates strong interest in $120,000 strike call options, with traders showing bullish sentiment about prices climbing beyond that threshold. At present, the $120,000 strike stands as the most popular option on Deribit, with a notional open interest valued at $1.52 billion.
Call options grant buyers the right to purchase an underlying asset at a predetermined price before expiration. Typically, traders buying call options are betting on substantial upward price movement, seeking outsized returns from bullish market trends.
The renewed focus on high-value call options coincides with Bitcoin’s push to reclaim the $100,000 price level. As of press time, BTC is trading above $99,500, reflecting an 8% recovery from its December 30 low of $91,384, based on data from CoinDesk and TradingView.
“The period surrounding the inauguration presents a key window for policy announcements that could serve as strong bullish triggers for Bitcoin,” said Greg Magadini, Director of Derivatives at Amberdata, in a weekly market analysis.
CF Benchmarks, a regulated cryptocurrency index provider, echoed similar sentiments while cautioning about potential delays in regulatory changes.
“A restructured SEC under pro-crypto leadership could reduce enforcement risks and create an environment more conducive to innovation. Clear compliance frameworks could also boost institutional investor confidence,” CF Benchmarks stated in its annual report shared with CoinDesk.
However, the firm also warned that delays in implementing regulatory changes or unexpected policy shifts might dampen market optimism, potentially leading to short-term volatility.
Since Trump’s victory in the U.S. presidential election in early November, expectations for a more crypto-friendly regulatory landscape have fueled positive market sentiment. Bitcoin climbed from around $70,000 to all-time highs above $108,000 in the weeks following the election. However, the rally slowed in late December, likely due to year-end profit-taking and the Federal Reserve’s hawkish stance on interest rates.
As the inauguration date approaches, traders and investors are keeping a close watch on potential policy developments that could drive Bitcoin’s next major price movement.
