Bitcoin options traders have their sights set on $100,000 milestone

Leverage is rising in the cryptocurrency market, with open interest in both futures and options markets at high levels. CME Group’s bitcoin futures contracts are one of the most popular ways for U.S. institutional investors to add leverage, while overseas traders often use perpetual contracts and options on some exchanges to make bets. “At these levels, traditional financial institutions will lend dollars to the cryptocurrency market through shorting to earn an annualized yield of 18% by the end of November, and FalconX’s derivatives desk is seeing strong interest in this trade as yields continue to swell,” said Ravi Doshi, head of markets at prime broker FalconX. Bitcoin options traders have set their sights on the $100,000 milestone price for the original cryptocurrency. According to data from cryptocurrency options exchange Deribit, investors are lining up to bet that Bitcoin will break this milestone before the end of the year. On Monday, Deribit data showed that there were 9,635 bitcoins (worth about $780 million) of open interest betting that Bitcoin will reach $100,000 by December 27, the most of any trade on that expiration date. Deribit puts the chance of the trade succeeding at 18.6%. (bnnbloomberg)