Bitcoin price stands still for 50 days. Why do "whales" bet on its growth to $130,000?

Bitcoin's volatility is now close to minimal: the most popular cryptocurrency has remained within a narrow price range for almost two months. But there is growing confidence in the market that the lull is coming to an end. Major players are increasingly betting on a sharp rise in bitcoin in the next two to three months.

Bitcoin traders are increasingly opening positions in call options with high strike levels - a signal that the market is preparing for a new wave of price volatility, writes Coindesk. Bitcoin's price hasn't moved out of the $100,000-110,000 range for more than 50 days. Its appreciation is being held back by sales of the cryptocurrency by long-term holders - they are counterbalancing inflows into ETFs.

"Volatility remains pinned at historic lows, but a solid break of resistance at $110k could trigger renewed demand for volatility (contracts that benefit from price movements - Oninvest). It looks like some big players are taking positions for just such a scenario," quotes Coindesk a report by QCP Capital, an investment firm specializing in cryptocurrency options and futures.

According to QCP Capital, major players are betting on bitcoin growth by the fall. They are buying contracts that will yield profits if the cryptocurrency's price rises above $130,000, while maintaining positions designed for growth between $115,000 and $140,000. All of this points to a "structurally bullish view [of investors] for the third quarter," accounts the investment firm.

Market participants are increasingly confident that new liquidity injections from major central banks could spark a bitcoin rally, the Cointelegraph reports. The publication cites analyst Ted Pillows, who stated that current market conditions - cautious bitcoin buying by major players and the postponement of U.S. duties until Aug. 1, which has increased investors' appetite for risk - give the green light for bitcoin to rise to $120,000 within weeks.

In June, the investment giant BlackRock increased its investments in bitcoin by $3.85 billion. This was done carefully: the purchases were divided into many small transactions so as not to provoke sharp price fluctuations. This approach fits into the strategy of classical risk management: gradual formation of a position without pressure on the market. This shows that BlackRock is entering the cryptocurrency for a long time, told in a publication on the website of the investment platform AInvest. 

Against the backdrop of a growing institutional presence, AInvest advises private investors to keep a close eye on the dynamics. If major players continue to enter the crypto market, bitcoin may cease to be a purely speculative asset and take the place of a tool for diversification and risk management in investors' portfolios.

This article was AI-translated and verified by a human editor