Bitcoin Bull Frenzy Hits $44K As Futures Market Expects 10-12% Rise Into 2024

Data from Deribit, the leading exchange for Bitcoin BTC/USD and Ethereum options, signals a positive outlook for Bitcoin's value increase in the spring of 2024.

What Happened Deribit Chief Commercial Officer Luuk Strijers highlighted that the futures premium above the Bitcoin spot price has been increasing since early October 2023 for contracts expiring in March, June, and September 2024.

According to The Block, citing data from Deribit, the gap between the current market price and the future price of the asset has widened to over 10%, presenting a significant indicator of market trends.

“When the basis is increasing, it suggests that the market expects the spot price to rise. The annualized basis is now 10-12%, which means the market expects the underlying asset to rise 10-12% in the coming year,” Strijers told the outlet.

Also Read: What's Going On With Robinhood Markets Stock Tuesday?

Price Action: Bitcoin prices, on Tuesday, breached the $44,000 mark for a brief time and then retreated. The apex crypto was up 3.8% in the past 24 hours to $43,447 at the time of publication.

Strijers attributes the rally to widespread market optimism and anticipations of a spot Bitcoin ETF getting approval. He further notes that following the Binance settlement, an increase in geopolitical tensions, a relaxation in inflation rates, and a steady growth in institutional involvement have also been observed.

Why It Matters: With the optimism surrounding the approval of spot Bitcoin ETFs, there is a heightened interest in activity within the options markets, reflected by the open interest nearing an all-time high on Deribit's market.

Currently, BTC options open interest stands at around $13.8 billion compared to $12.4 billion as of Oct. 24, 2023. Meanwhile, ether options open interest stands at $6.29 billion compared to $6.5 billion as of Oct.24, 2023.

Now Read: Bitcoin's Rally Continues, Soars To 43K

Photo: Shutterstock