Traders are betting on a significant price increase for bitcoin as the Federal Reserve makes interest rate decisions.
Market participants are placing massive bets on bitcoin reaching $72,000 by the end of the month, coinciding with the Federal Reserve's interest rate decision.
This 'bull call spread' strategy involves buying call options for a price increase to $70,000 and selling call options for a price above $72,000, reducing the cost of entry.
Estimated $2.5 billion in notional value has been invested in this strategy, suggesting that financial institutions are taking a long-term positioning approach.
The decision to sell call options for a price above $72,000 implies that investors are willing to forgo potential gains if bitcoin fails to reach the target price.