Bitcoin Eyes $100K Surge as Traders Bet on Record Highs Post-Trump Inauguration
Traders Position for Bitcoin Rally Following Trump’s Inauguration on January 20
The Bitcoin (BTC) market is witnessing renewed bullish sentiment as traders position for a potential rally to record highs following President-elect Donald Trump’s inauguration on January 20.
Key Insights
- Options activity on Deribit signals rising expectations for Bitcoin to hit $100,000 and $120,000 in the coming months.
- A trader invested over $6 million in $100K call options expiring on March 28, reflecting optimism for a post-inauguration rally, according to Amberdata.
- Growing anticipation for pro-crypto regulatory changes is fueling bullish sentiment as Bitcoin edges closer to reclaiming the $100,000 mark.
Options Market Signals Optimism for New Highs
Traders are betting big on Bitcoin’s upward momentum, evidenced by strong demand for call options at $100,000 and $120,000 strike prices.
Data from Amberdata revealed that a significant trade worth over $6 million targeted $100,000 calls, reflecting expectations for Bitcoin to break new highs within months of Trump taking office.
In addition, $120,000 call options have gained traction, boasting a notional open interest of $1.52 billion—making it the most popular option on Deribit.
Call options grant buyers the right to purchase BTC at a set price, signaling bullish sentiment and expectations of asymmetric gains from an impending rally.
Bitcoin Price Trends and Market Sentiment
Bitcoin is currently trading above $99,500, marking an 8% recovery from its recent low of $91,384 on December 30, according to data from CoinDesk and TradingView.
Market analysts believe the inauguration period could serve as a catalyst for bullish price action, fueled by positive regulatory announcements and pro-crypto policies.
“The inauguration and subsequent policy updates could ignite bullish sentiment, driving Bitcoin to new highs,” said Greg Magadini, Director of Derivatives at Amberdata, in a weekly report.
Regulatory Reforms and Investor Confidence
Regulated index provider CF Benchmarks echoed similar optimism, emphasizing the potential for a restructured SEC under pro-crypto leadership to reduce enforcement risks and promote innovation.
According to CF Benchmarks, reforms such as streamlined compliance requirements could boost investor confidence and support long-term market growth. However, the firm also cautioned that policy delays or shifts could introduce short-term volatility despite the broader bullish outlook.
Trump’s Election Win Boosts Sentiment Despite Recent Pullback
Bitcoin’s surge from $70,000 to over $108,000 in the weeks following Trump’s victory in November reflected optimism for regulatory changes favoring cryptocurrencies.
However, the rally paused in late December, likely due to profit-taking and hawkish Federal Reserve rate projections, leading to temporary market consolidation.
Looking Ahead
As traders anticipate regulatory shifts and policy announcements under the new administration, Bitcoin’s price action remains in focus. The combination of options market activity, regulatory optimism, and institutional interest could provide the momentum needed for BTC to test $100,000 and beyond in the coming months.
With March 28 call options signaling bullish sentiment, investors are closely watching developments around the January 20 inauguration for potential catalysts that could drive record-breaking highs.
