Lyra's Decentralized BTC Options Marketplace Sees 20% Chance of Prices Rising Above $70,000 by End of April
Lyra Finance, the world's largest decentralized crypto options venue, has revealed that there is a one-in-five chance of bitcoin (BTC) crossing $70,000 by the end of April. This information comes from options data provided by Lyra's decentralized marketplace, which recently listed options with an April 26 expiry.
Options data predicts a potential all-time high for bitcoin
Lyra's options market is suggesting a roughly 20% probability of bitcoin hitting fresh all-time highs, trading higher than $70,000, by April 26. This prediction has caught the attention of traders and market participants. Nick Froster, founder of Lyra and former Wall Street options trader, stated that this view is based on the analysis of Lyra's markets.
Traders position themselves for bitcoin's recent surge
Traders on Lyra have accurately positioned themselves to take advantage of bitcoin's recent surge above $50,000. However, their latest view, which implies a low probability of bitcoin surpassing $70,000 by the end of April, may come as a surprise to some. Despite the recent bullish momentum of bitcoin, which has risen 35% to $52,000 in just three weeks, traders are not expecting a record-breaking move at this time.
Factors influencing bitcoin's potential gains
The consensus among crypto traders is that bitcoin could see further gains in the coming weeks. This view is supported by the stimulative fiscal policy in the U.S. and the upcoming quadrennial mining reward halving in April. Additionally, the global recession probability has declined, boosting risk-taking in the financial market.
Understanding options and their significance
Options are derivatives that give traders the right, but not the obligation, to buy or sell an underlying asset at a predetermined price in the future. The pricing of options can provide valuable insights into market sentiment and expectations. This is why Lyra's options data is closely monitored by sophisticated traders to gauge the direction of the market in the short and long term.
Lyra: The leading decentralized crypto options venue
Lyra Finance stands as the largest decentralized crypto options venue, accounting for 50% of the global decentralized exchange (DEX) options volume of $32 million in the past 24 hours, according to DeFiLlama. The platform recently listed bitcoin options with an expiry date of April 26, allowing traders to speculate on price action related to the upcoming reward halving, scheduled for mid-April. Early trading activity for the April 26 expiry has seen a focus on the upside, with call buyers targeting the $64,000 and $70,000 strikes, as mentioned by Froster.
In conclusion, Lyra Finance's decentralized options marketplace is showing a 20% probability of bitcoin surpassing $70,000 by the end of April. Traders and market participants are watching these options closely as they provide valuable insights into the future direction of the market.
Analyst comment
Positive: The decentralized BTC options marketplace, Lyra Finance, suggests a 20% probability of Bitcoin prices rising above $70,000 by the end of April. Traders correctly predicted Bitcoin’s recent surge above $50,000, and this new view provides an opportunity for further gains. As Lyra is the largest decentralized crypto options venue, it reflects growing interest in the market.
