Bitcoin (BTC) extended its rally for a second day, hitting an all-time high of $118,000. Investors in the options market are also eyeing even higher prices.
Bitcoin Reaches $118,000, Options Market Focuses on $120,000 Target
Open interest on the Deribit exchange is concentrated around call options at $115,000 and $120,000, while interest has also increased in long-term options due September 2025 and December 2025. These options have target prices of $140,000 and $150,000.
According to data platform CoinGlass, $543 million worth of short positions were liquidated in the last hour alone, bringing the total liquidation in the last 12 hours to $762 million.
Experts attribute this rise to institutional demand and positive market sentiment. Favorable funding rates in perpetual futures contracts are supporting the rise in investor sentiment.
This upward trend coincides with developments such as the “Crypto Week” held in the US and many companies adding Bitcoin to their treasury reserves.
Bitcoin's rally above $116,000 continues the dramatic price cycles the asset has undergone since 2009. What's notable, however, is that volatility has begun to decrease over time.
Historically, Bitcoin has experienced at least four major bear markets, with average declines of 45%—similar to the price movements experienced by the Nasdaq after the Dotcom bubble in the early 2000s.
The most notable decline occurred in December 2017. The price of Bitcoin fell 25% in a single day, from $20,000 to $11,500, before recovering to $12,800 by evening.
However, each cycle has created higher price floors, from a low of $0.30 in 2011 to a high of over $3,000 since 2018, suggesting growing long-term confidence in Bitcoin among institutional investors.
While the recent $116,000 breakout, coupled with $543 million in short liquidations, suggests the market is still vulnerable to high momentum moves, it also signals that Bitcoin is becoming a more mature and resilient asset.
Bitcoin's new high is a result of growing interest not only from retail investors but also from institutional investors. According to a Coinbase survey, one-third of 250 institutional investors increased their crypto holdings in 2023, with over 60% planning to increase their holdings further in the next three years.
According to research by KPMG, 50% of financial services companies now offer crypto products, with corporate crypto exposure rising from 31% in 2021 to 40% in 2023.
This surge of demand is being fueled by regulated investment vehicles like spot Bitcoin ETFs. Such products were unavailable in previous bull cycles. This makes it easier for institutional investors, especially those with long-term investment intentions, to enter the market.
Furthermore, the fact that “companies with crypto treasures” are becoming Bitcoin-indexed financial instruments by offering their shares or bonds to investors is a development parallel to corporate strategies emphasized by institutions such as EY and Fidelity.
*This is not investment advice.
