Buying a high-risk $100,000 Bitcoin call signals an expectation of new highs after Trump’s inauguration

Bitcoin (BTC) market trends indicate prices are expected to reach record levels following the inauguration of President-elect Donald Trump on January 20.

On Saturday, a trader on cryptocurrency exchange Deribit spent more than $6 million buying $100,000 worth of strike call options that are set to expire on March 28, according to data source Amberdata.

“This trade forecasts that new highs for Bitcoin will be broken just a few months after Trump officially takes office,” Amberdata said on X.

Traders are also net buyers at the $120,000 level, indicating a strong expectation of a rally that pushes prices above that level. The $120,000 call is Most popular An option on Deribit, which has a notional open interest of $1.52 billion at press time.

A call option gives the buyer the right to buy the underlying asset at a specified price at a later time. The call buyer is implicitly bullish in the market, looking to realize asymmetric gains from the expected price rise.

The renewed interest in call options comes as BTC looks to reclaim the $100,000 level. At press time, the leading cryptocurrency by market cap was trading at more than $99,500, representing an 8% rebound from the December 30 low of $91,384, according to data source CoinDesk and TradingView.

“The inauguration and its immediate aftermath will be an opportune time for bullish announcements and policies that could be bullish catalysts for Bitcoin to move higher,” Greg Magadini, director of derivatives at Amperdata, said in a weekly newsletter.

Regulated cryptocurrency index provider CF Benchmarks expressed a similar view while warning that potential delays in policy development, if any, could dampen the bullish sentiment.

“The SEC’s crypto-led restructuring may reduce enforcement risk and foster innovation,” CF Benchmarks said in an annual report shared with CoinDesk. “These changes, coupled with streamlined compliance requirements, could boost investor confidence.”

“We believe the industry framework will come, however, delays in implementation or shifts in policy may reduce market optimism, creating short-term volatility,” the company added.

Expectations of pro-crypto regulatory changes have boosted cryptocurrency market sentiment since Donald Trump won the US election in early November. Bitcoin rose from around $70,000 to new all-time highs above $108,000 weeks after the election. However, the rally lost steam in the second half of December, likely due to year-end profit-taking and the Fed’s hawkish interest rate outlook.