Bitcoin traders place $2.9 million bet on a rapid price jump above $82,000

Bitcoin’s $BTC$80,733.47 recent staggering price rise has some traders paying millions for upside exposure.

On Monday, one or more traders bought 2,000 bitcoin call-option contracts with an $82,000 strike price expiring on Sept. 4, according to data tracking platform Laevitas. The trade effectively bets that bitcoin’s spot price, currently near $80,000, will rise above $82,000 on or before Sept. 4.

Think of it like buying a lottery ticket – the buyer pays a relatively small upfront amount for the chance of a much larger payout if the bet pays off. In this case, the call buyers spent $2.9 million in premium, the maximum they stand to lose if bitcoin remains below $82,000 through the Sept. 4 expiry.

This bullish options flow comes amid a renewed upswing in Bitcoin. $BTC is currently trading around $80,000, up from roughly $64,000 a week ago, a 25% gain over seven days, according to CoinDesk data.

The rally appears to have been driven by the U.S. Treasury’s bond-buyback announcement, continued inflows into spot Bitcoin ETFs, and short liquidations that likely accelerated the move higher.

Caution persists

Broadly speaking, the multi-billion dollar options market listed on Deribit continues to showcase caution.