Bitcoin Hits New All-Time High, Institutional Demand Drives 25% Surge

Bitcoin has continued its upward trajectory, reaching a new all-time high for the second consecutive day. This surge has caught the attention of options traders, who are now eyeing even higher price targets. The cryptocurrency's price first breached the $116,000 mark, leading to a significant concentration of open interest in call options with strike prices of $115,000 and $120,000 on the Deribit exchange. This trend is also evident in long-term options expiring in late September and December, where the open interest in options with strike prices of $140,000 and $150,000 has also increased notably.

The recent price surge has been partly driven by institutional demand, which has bolstered the confidence of cryptocurrency bulls. Bitcoin's rally began in November last year following the U.S. presidential election, as the market anticipated a more lenient regulatory environment under the new administration. The U.S. Congress has designated the week of July 14 as "Cryptocurrency Week," further highlighting the growing interest in digital assets. This year alone, Bitcoin's price has surged by approximately 25%.

The upward momentum in Bitcoin's price has also led to a significant increase in short positions being liquidated. Following the breach of the $116,000 mark, short sellers have been forced to close their positions, with liquidations amounting to $543 million in the past hour and $762 million in the past 12 hours. This trend indicates that the market is increasingly bullish on Bitcoin's prospects, with traders and investors alike betting on further price appreciation.

The recent price movements in Bitcoin have also had a ripple effect on other cryptocurrencies, with some experiencing significant gains. However, the focus remains on Bitcoin, which continues to dominate the cryptocurrency market in terms of market capitalization and investor interest. As the price of Bitcoin continues to climb, options traders are increasingly bullish on its prospects, with some even predicting that it could reach $120,000 in the near future. This optimism is underpinned by the growing institutional interest in Bitcoin, as well as the increasing acceptance of cryptocurrencies as a legitimate asset class.