Crypto Daily | Bitcoin Options Traders Eye $120,000; Strategy's Bitcoin Bet Pays Off With Over $27 Billion in Unrealized Gains

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Bitcoin Options Traders Eye $120,000 as Token Extends Record Run

Bitcoin options traders are already setting their sights on higher prices as the original cryptocurrency extends its record-breaking rally for a second day.

As Bitcoin breached $116,000 for the first time, the open interest, or the number of outstanding contracts on the Deribit exchange, has become concentrated around Bitcoin call options with $115,000 and $120,000 strike prices. Longer-term options expiring in late September and December have seen elevated open interest at $140,000 and $150,000.

Bitcoin continued its run on Friday, climbing as much as 6% to around $118,208. The rally triggered a major unwinding of short positions, with over a billion dollars worth of bets against the token getting liquidated over the past 24 hours, according to data compiled by Coinglass. Investors rushed into Bitcoin ETFs, pouring in a net $1.2 billion on Thursday.

Strategy's Bitcoin Bet Pays Off With Over $27 Billion in Unrealized Gains

Strategy currently holds 597,325 bitcoins, with a total purchase cost of approximately $42.4 billion and an average price of approximately $70,982 per bitcoin. According to market data, BTC is currently trading at $116,291. Based on this calculation, Strategy's current floating profit on bitcoin holdings is approximately $27.064 billion.

Bit Digital and BitMine Make Strategic Shift, Move Large Holdings to Ethereum

Bit Digital and BitMine have made major shifts in their corporate treasury strategy that have shocked both the crypto world and Wall Street giants. Both companies have reallocated their treasury reserves to Ethereum. Bit Digital, in particular, sold its Bitcoin and invested the proceeds from the sale in Ethereum.

To many, this is surprising as Bitcoin is known for its digital gold identity and many corporations have already adopted it into their financial strategy. However, this shift aligns with the prediction of many Wall Street firms that view Ethereum as the infrastructure of the future internet, especially given its role in decentralized finance (DeFi), NFTs, stablecoins, and Layer 2 scaling.

SharpLink Stock Soars as It Doubles Down on Ethereum Treasury Strategy

The company has been purchasing tens of millions of dollars worth of ETH every day, according to Ethereum co-founder Joe Lubin, who also chairs SharpLink’s board and leads Consensys, a major Ethereum software developer.

At the current rate, SharpLink is on track to overtake the Ethereum Foundation, which currently holds around $725 million worth of the cryptocurrency. As of Thursday, SharpLink’s Ethereum reserves stood at $612 million.

Robinhood Faces Florida Investigation for ‘Low-Cost’ Crypto Marketing

Florida Attorney General James Uthmeier has opened an investigation into Robinhood Crypto, alleging the platform may have misled customers by marketing itself as the cheapest way to buy digital assets.

In a statement on Thursday, the attorney general’s office said it issued a subpoena to Robinhood’s crypto unit, seeking internal documents, marketing materials and pricing data. The probe aims to determine whether the company violated Florida’s Deceptive and Unfair Trade Practices Act.

“When consumers buy and sell crypto assets, they deserve transparency in their transactions,” Uthmeier said. “Robinhood has long claimed to be the best bargain, but we believe those representations were deceptive.”

Bitcoin Spot ETF Flow

The overall net inflow of the US Bitcoin spot ETF on Thursday was $1.18 billion. The total net asset value of Bitcoin spot ETFs is $143.86 billion, and the ETF net asset ratio (market value compared to total Bitcoin market value) is 6.37%.

Source: SoSo Value

The Bitcoin spot ETF with the highest net inflow on July 10 was iShares Bitcoin Trust ETF, with a net inflow of $448.49 million. Following that was Fidelity Wise Origin Bitcoin Fund, with a net inflow of $324.34 million, according to SoSoValue.