Bitcoin Soars to New Highs, Options Market Eyes $120K as New Starting Point

Bitcoin has smashed records for the second consecutive day, with options traders now targeting higher levels.

Following its first breach of $116,000, open interest on the Deribit exchange has heavily concentrated on call options with strike prices of $115,000 and $120,000. Longer-dated options expiring in late September and December show significant open interest at $140,000 and $150,000.

Coinglass data reveals accelerated short liquidations after the $116,000 breakout, with $543 million cleared in the past hour and a cumulative $7.62 billion in 12 hours. This rally is partly fueled by institutional demand, reinforcing crypto bulls’ post-November election view that Trump’s return to the White House will usher in a new era of regulatory easing.

The U.S. Congress has designated July 14-18 as “Cryptocurrency Week.” Amid a broad rally in risk assets pushing stock markets to new highs, Bitcoin, the largest digital asset by market cap, has risen about 25% year-to-date.

Chris Newhouse, research director at DeFi trading firm Ergonia, noted, “It’s noteworthy that the options market is reflecting a fresh bullish sentiment.” The funding rate in Bitcoin perpetual futures—a key market sentiment indicator—remains positive, signaling strong demand for long positions, a popular tool for leveraged trading among crypto investors.

Trump’s optimistic posts on Truth Social have further stoked Thursday’s market mood. Mauricio Di Bartolomeo, co-founder and chief strategy officer at Ledn, believes the recent formation of crypto asset management firms will boost demand, acting as a catalyst for the rise.

These firms are exploring stock or bond issuances to include digital assets on their balance sheets, positioning themselves as Bitcoin proxies in the stock market.

Di Bartolomeo said, “Driven by ongoing investor and corporate demand, Bitcoin has reached a historic high.” Despite macro headwinds—like tensions from Trump’s proposed August tariff hikes—Bitcoin continues its historic climb.

Roshan Roberts, CEO of OKX US, stated, “Bitcoin is proving its unique value. As trade friction escalates and altcoins falter, institutions are viewing it as a macro hedge and an increasingly mature asset class. July will test the market, but Bitcoin seems ready.”