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- Bitcoin options traders heavily favor $120K calls post-FOMC.
- On-chain and sentiment data signal bullish momentum in BTC.
- Fed rate decision and projections likely to drive next market move.
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Bitcoin traders are keeping a close eye on the Federal Reserve’s upcoming interest rate decision and FOMC economic projections, with options markets signaling strong optimism for a potential rally. Despite ongoing market volatility, bullish sentiment in Bitcoin options is surging, as traders target the $120K mark.
Traders Target $120K Strike Price
Options data shows Bitcoin bulls are betting heavily on a post-FOMC rally. Notably, $120K call options hold a notional value of $200 million for each upcoming expiry in the next three days. In an even more bullish scenario, traders are eyeing $125K, while the conservative bearish case sets $115K as a floor.
Over the last 24 hours, call volumes have outpaced puts significantly, driving the put-call ratio down to 0.68. This imbalance highlights traders’ growing confidence in a post-FOMC Bitcoin surge, fueled by expectations of potential 25 bps rate cuts following weak jobs data and easing inflation pressures.
Market Sentiment Hinges on Fed Decision
Investor focus is squarely on the Federal Reserve today. Market watchers anticipate that a rate cut or dovish FOMC projections could spark renewed bullishness across risk assets, including Bitcoin. Historical precedent supports this: last year, a surprise Fed cut catalyzed a sharp Bitcoin rally past $100K, amplified by seasonal cycles and liquidity shifts.
Analysts note that previously bearish traders are now flipping bullish ahead of the meeting. According to 10x Research, call options are now “rich relative to puts,” reflecting a clear tilt toward positive market expectations.
On-Chain Data Supports Bullish Outlook
Bitcoin’s on-chain metrics reinforce the optimistic mood. Trading volumes indicate BTC is consolidating in a $114.6K–$117.1K range, with upward momentum in the past 24 hours. The Bitcoin Advanced Sentiment Index shows a 68.8% bullish sentiment, approaching the high-bull threshold near 80%, signaling strong potential for a breakout if FOMC outcomes align favorably.
Also Read: Bitcoin Faces $116K Resistance Ahead of Fed Rate Cut: Schiff Issues Warning
As the crypto market braces for the FOMC’s announcements, Bitcoin options traders are increasingly confident in a post-meeting rally. With strong call interest, rising on-chain bullish indicators, and historical Fed-driven price patterns, Bitcoin could be poised to test the $120K mark—provided macro conditions support the momentum.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
