Derivbit's massive bullish spread trade bets that Bitcoin will rise to $72,000 at the end of the month

According to CoinDesk, large-scale Bitcoin call spread trading occurred on the Deribit exchange this week. Traders bought 20,000 call options with an expiration date of July 31 and a strike price of US$70,000, and sold 20,000 call options with the same expiration date and a strike price of US$72,000, totaling 40,000 contracts with a nominal value of approximately US$2.5 billion. The strategy is a bullish spread and expects Bitcoin prices to rise moderately to the US$70,000 to US$72,000 range. Jean-David Péquignot, chief commercial officer of Deribit, said he saw a number of large bullish spread trades this week, which usually reflect the layout of institutional positions. Trading timing is noteworthy: The July 31 expiration date coincides with two days after the July 29 Fed interest rate decision, implying that some large traders expect the Fed meeting to push Bitcoin higher towards $72,000. Federal Reserve funds futures show a 75% to 80% probability of leaving interest rates unchanged at the July meeting. June inflation data showed a significant slowdown in price pressures due to the fall in oil prices. However, this week's escalation of the US-Iran conflict led to oil prices soaring. Some analysts warned that inflation data has lagged behind the latest situation.