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Bitcoin Monthly Options Could be the First Step Towards $120K

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Bitcoin Miners Cut Production To Avoid Texas Peak Power Costs
Bitcoin Miners Cut Production To Avoid Texas Peak Power Costs

The key take-aways

  • Bitcoin’s $4.3billion options expiry favours neutral to bullish bets. There is a $175m advantage if the price stays above $113,000.

  • Bitcoin’s future trajectory may be determined in the short term by macroeconomic factors, like weak US job data or doubts about AI.

BitcoinBTCThe price of soared above $114,000 on Thursday, following a strong earnings report by Oracle Corporation (ORCL), one of the major players in artificial intelligence infrastructure. Bitcoin reached its highest level in two weeks. This action raised the expectations that bullish sentiment would continue ahead of BTC’s $4.3 Billion valuation. options expiry On Friday,

USD Aggregate BTC options interest for Sept. 12, USD Source: laevitas.ch

The open interest in put options is $2.35B, a significant increase from $1.93B in the previous week. call (buy) contracts. Even so, the call option has gained a slight advantage since Bitcoin’s value moved up from its lows in September of $107 500. This current market imbalance, which favors put options over call options, is unique in an industry where traders tend to be optimistic.

Deribit is the market leader with 75%, and OKX has 13% of Bitcoin weekly share. Bybit and Binance each account for about 5%. Deribit’s dominant position is the best indicator of Bitcoin’s ability to reach $120,000 over the short-term.

BTC Sept. 12 options open interest at Deribit, USD. Source: Laevitas.ch

Deribit’s open interest in puts is less than $125,000,000 at or above $114,000, which makes it difficult to take neutral or bearish positions. Call contracts worth more than $300,000,000 would activate if Bitcoin maintains levels over $113,000 until Friday expiry. The $175,000,000 advantage call buyers have could be the catalyst needed to continue Bitcoin’s bullish trend.

Bitcoin may be restricted by the US Job Market and AI Sustainability.

Oracle’s surge of 36% in its share price on Wednesday, was driven by higher earnings expectations after the company reported a $455-billion increase in contracts. The Wall Street Journal revealed that OpenAI was responsible for 300 billion dollars of Oracle’s contract backlog.

Source: X/sam_mielke

X-user sam_mielke showed how Nvidia, which owns and rents its AI datacenters, generates recurring revenues by selling their equipment to Oracle. This post implied that these companies were engaging in financial exploitation. “cycling,” Effectively converting capital expenses into revenue. 

Recession fears, whether or not they are valid criticisms, could increase Bitcoin bulls’ belief that the cryptocurrency will hit a record high by 2025.

The optimism of traders has been hit by Tuesday’s steep drop. negative revision United States employment statistics. Ebrahim Poonawala is a Bank of America equity analysts warned Yahoo Finance says that higher unemployment rates could affect credit quality in large banks. He did note, however, the fact that credit losses are still relatively low. “a non-event” Throughout 2025.

Related: Crypto traders’ current fear won’t last long, analysts say

Call options will have a greater open interest than put options if Bitcoin is above $112,000 at Friday’s deadline, thereby supporting neutral to bullish strategies. Put options are favored by $100 million if Bitcoin’s price is below $111,000 on Friday at 8 am.

The final decision on Bitcoin’s future direction will likely be made at the last moment. Macroeconomic uncertainties are the key factors.

This is a general article and not intended as investment or legal advice. These are solely the opinions, views, and thoughts of the author and may not reflect the opinions and views of Cointelegraph.