Traders are betting on a rise, that Bitcoin will reach $120,000 by the end of March.
This is according to Deribit option data, which shows that more than two-thirds of traders are betting that Bitcoin will trade above $120,000 by March 28.
Bitcoin is trading at $83,000 and has fallen by 12% in February.
A similar trend is observed on Derive, where analysts see "significant demand for high-leverage calls," despite market turmoil, said Sean Dawson, head of options trading protocol research.
"This indicates that traders are looking to move up due to large price fluctuations," Dawson wrote in a blog on Tuesday.
This news comes at a time when a combination of scandals, hackers, tariffs, and geopolitical uncertainty has pushed Bitcoin to its lowest level since November.
$9.7 billion
March will be the largest options expiration of the year and the second largest of all time, with the notional value of Bitcoin options at $9.7 billion.
Data from https://basedmoney.io/metrics/volume shows a so-called maximum pain price of $85,000 for Bitcoin options expiring on March 28, indicating how low the price could go before most traders actually lose their bets.
Analysts say that the price of Bitcoin will recover. For example, both Bernstein and Standard Chartered still see Bitcoin reaching $200,000 within the next year or so.
But things could get worse before they get better.
On Monday, Arthur Hayes, Chief Investment Officer of Maelstrom, stated that he expects Bitcoin to drop to $70,000 before recovering, as U.S. President Donald Trump's policies are likely to lead to a devaluation of the dollar.
As soon as Bitcoin recovers, it could reach 1 million dollars by the end of Trump's presidency, Hayes said.