Bitcoin at $70K by April’s End?

"Lyra Finance's decentralized options market suggests a 20% chance of Bitcoin exceeding $70,000 by April's end, as traders cautiously navigate potential record-breaking moves amid the upcoming reward halving. With Bitcoin's recent 35% surge to $52,000 and Lyra's prominent position in the crypto options space, market sentiment remains dynamic, reflecting both optimism and reserved expectations."


Worldsfeed Tech News: In a recent development, Lyra Finance, the world’s largest decentralized crypto options venue, has introduced options with an April 26 expiry, providing traders with an opportunity to speculate on bitcoin’s price movements around the anticipated reward halving in mid-April.

According to options data from Lyra, there is a one-in-five chance of bitcoin surpassing $70,000 by the end of April. Nick Forster, Lyra’s founder and a former Wall Street options trader, revealed, “Lyra’s markets are implying a roughly 20% chance of bitcoin hitting fresh all-time highs (trading higher than $70,000) by April 26.”

Despite bitcoin’s recent 35% surge to $52,000 in three weeks, traders on Lyra seem to be taking a cautious stance on the likelihood of a record-breaking move above $70,000 by the end of April.

Notably, Lyra’s options data has been indicative of market trends, as traders correctly positioned themselves for bitcoin’s recent climb above $50,000. The current perspective, however, suggests a more reserved expectation for the cryptocurrency’s future trajectory.

Bitcoin’s recent bullish momentum has been fueled by substantial inflows into U.S.-based spot ETFs, and the consensus among crypto traders is optimistic about further gains. The U.S. fiscal policy’s stimulative nature, compensating for higher interest rates, is seen as a contributing factor. Additionally, the upcoming quadrennial mining reward halving in April and a decreased global recession probability since December 2021 are supporting risk-taking sentiments across the financial market.

Options, as derivatives, provide purchasers with the right (but not the obligation) to buy or sell an underlying asset at a predetermined price in the future. Lyra, accounting for 50% of the global decentralized exchange (DEX) options volume, is a key player in the crypto options space.

With early trading activity focusing on the upside, particularly at the $64,000 and $70,000 strikes, Lyra’s options market reflects the ongoing sentiment among traders as they navigate the dynamics of the crypto market leading up to and following the anticipated reward halving in mid-April.

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