Could Bitcoin Smash Records? Options Market Sees 20% Chance Of $70K By April

There is a 20% chance that Bitcoin BTC/USD could surpass the $70,000 mark by the end of April.

That's according to data from the decentralized marketplace Lyra Finance.

What Happened: "Lyra’s markets are implying a roughly 20% chance of Bitcoin hitting fresh all-time highs (trading higher than $70,000) by April 26," Lyra founder Nick Forster told Coindesk.

The prediction might catch some off guard, especially considering Bitcoin's 35% increase to $52,000, marking its highest point since late 2021.

This uptrend is driven by significant investments into U.S.-based spot ETFs, showcasing strong bullish momentum.

The broader sentiment among cryptocurrency traders suggests possible further increases in Bitcoin's value.

This optimism is partly due to the expansive U.S. fiscal policy, which is seen as a counterbalance to rising interest rates.

Additionally, the anticipated mining reward halving in April is seen as favorable factors for risk-taking in the financial markets.

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Why It Matters: Options, as financial derivatives, offer insights into market expectations.

These instruments allow buyers to purchase or sell an asset at a set price in the future, without obligation. The pricing of options can reveal where experienced traders predict the market will move in the near term.

Lyra stands as the largest decentralized platform for crypto options, commanding half of the global decentralized exchange (DEX) options volume, which reached $32 million in the past 24 hours, according to DeFiLlama.

The platform recently introduced Bitcoin options set to expire on April 26, coinciding with the anticipated reward halving.

Forster said, "Early trading activity [in the April 26 expiry] has been concentrated in the upside, with call buyers lighting up the $64,000 and $70,000 strikes," indicating a bullish outlook from traders on the future price of Bitcoin.

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Image: Illustrated with MidJourney