According to data from decentralized options market Lyra Finance, cryptocurrency investors think there is a 20 percent chance that Bitcoin (BTC) will exceed the $70,000 level by the end of April.
This prediction comes as Bitcoin has surged 35% in the last three weeks to reach $52,000 and the mining reward planned for April has been halved. Because this rate was almost zero until a few weeks ago.
Nick Froster, Lyra's founder and a former Wall Street options trader, explained in an interview that Lyra's markets show there is about a 20% chance of Bitcoin rising above its all-time high of $70,000 by April 26.
Despite Bitcoin's impressive rally, investors remain cautious about predicting further gains.
The consensus among crypto investors is that Bitcoin's further upside potential is supported by stimulative fiscal policy in the US, offsetting concerns about rising interest rates.
In addition, the fact that Bitcoin's mining reward will be halved in April and the reduced likelihood of a global recession since December 2021 are seen as factors supporting risk-taking sentiment in financial markets.
Option Data Also Supports the Rise
Options data, on the other hand, provides valuable information about market sentiment and expectations of sophisticated investors.
As reported by DeFiLlama, Lyra, the world's largest decentralized crypto options venue, accounts for 50% of global decentralized exchange (DEX) options volume.
In this context, Froster noted that early trading activity on April 26 showed great interest in call options, especially at the $64,000 and $70,000 strike prices, indicating a bullish sentiment among investors.
*This is not investment advice.