Wall Street traders expect a new 2021-style bullrun for Bitcoin

The recent rally in Bitcoin and crypto has taken US media interest to new heights. Where crypto was seen in 2022 as a failed investment that only brought destruction and destruction (especially due to the demise of Terra, Luna and FTT that year), this has completely changed since the conviction of Sam Bankman-Fried Beign this month.

Thanksgiving

With daily pieces in the New York Times, in Bloomberg and interviews about crypto on CNBC, it is clear that at least one topic will be discussed again at the Thanksgiving table this year: Bitcoin.

Wall Street is also once again viewing Bitcoin positively. Evidence of this can be seen in the many ‘call options’ for a future higher Bitcoin price that traders purchase.

The increased attention partly stems from expectations that the first US listed Bitcoin funds will soon receive regulatory approval, allowing much more money to flow into crypto.

Bloomberg admitted that some analysts expect 2024 to become like 2021, with record prices for Bitcoin and other cryptocurrencies.

“Crypto call options were in strong demand for the past few weeks,” said Caroline Mauron, co-founder of digital-asset derivatives liquidity provider Orbit Markets. While some traders placed leveraged bets on a “large breakout” to $100,000 or beyond, the more immediate test is the $38,000 level.

Figures from Deribit show a preponderance of bullish options bets on Bitcoin hitting $40,000 and even $45,000 by the end of December. Given that the traders selling the call options are willing to take the other side of the wager, that suggests $40,000 could become a key test area for Bitcoin’s rally.

Bundestag

People in Europe are also convinced again. Earlier this week, a proposal was launched in the German parliament to allow Bitcoin as legal tender instead of a future ‘digital euro’.

The proposal does not really have much chance of being accepted by Olaf Scholz’s government, but the fact that it has reached the Bundestag is of course an achievement in itself.