Bitcoin Traders Bet on $130,000 Rally as Market Awaits Volatility Surge
Bitcoin has been trading sideways for more than 50 days, locked between $100,000 and $110,000. But recent activity in the derivatives market hints that traders expect this period of calm to break soon.
Despite the subdued price action, crypto traders on Deribit are actively positioning for significant upside.
“Volatility levels are hovering near multi-year lows, but a move beyond $110,000 could spark fresh demand for options,” said Singapore-based QCP Capital in a research note. “Institutional players are already placing bets in anticipation.”
QCP reported strong demand for bitcoin call options expiring in September, particularly at the $130,000 strike. Traders are also maintaining interest in September call spreads between $115,000 and $140,000, suggesting expectations for a bullish breakout later in the third quarter.
Call options give traders the right—but not the obligation—to buy bitcoin at a predetermined price within a set time frame, often used to profit from upward price moves. The surge in activity around the $130,000 strike reflects optimism that bitcoin could surpass current price levels significantly.
Currently, bitcoin is trading near $108,574, as selling by long-term holders continues to balance out inflows into spot bitcoin ETFs.
Market participants are closely watching key macroeconomic developments. On Wednesday, the Federal Reserve will release the minutes from its June meeting, which could influence market sentiment. Meanwhile, reports suggest that the U.S. government has extended a 90-day tariff pause for several major trading partners until August 1, adding another layer of uncertainty to the market outlook.
