The past seven days have been tumultuous for Bitcoin. BTC climbs to new all-time high of $ 41,941. It then falls to a low of $ 30,305 just two days later.
The price has since consolidated, with the crypto priced at $ 35,000, at press time. Who were the main beneficiaries of this price increase? And is the rally over or are there still some gains to be made?
According to the data, Laevitas, a $ 36,000 BTC call buyer, took profits overnight for a total of 1,340 BTC. A figure which rose to more than 45 million dollars.
The same trader allegedly took part of these products, worth $ 13.1 million. It would reposition itself in calls of $ 56,000, $ 64,000 and $ 72,000.
The trader in question took the $ 36,000 bet when the value of BTC was around $ 22,000. At the time, $ 36,000 seemed out of reach, but Bitcoin hit a new high in the weeks that followed. It hit $ 41,914 on January 8.
As previously reported, the market has since corrected, with Bitcoin trading at around $ 35,500. In fact, some chain analysts have even suggested that a bigger correction could be on the cards. Indeed, past data indicates that Bitcoin increases dramatically, at around 150% after every 30% drop.
An emerging trend
Whether or not this materializes, an emerging trend appears to be that call options have been driving the market in recent months.
Market promoters believe that a maturing market is defined by the derivatives and options defining the micro-trend. It is also defined by an influx of investments from institutions.
Whales took advantage of the institutional buying trend. They are inclined to push prices up. They have the possibility of offloading their positions to the institutions in the coming months.
To congratulate you we are going to offer you our free method of investing in cryptocurrencies simply and automatically with the objective of generating regular income while protecting your capital as much as possible.