On Deribit, large-scale bullish put-spread trades are betting that Bitcoin will rise to $72k by the end of the month

Mars Finance reports that, according to CoinDesk, Deribit saw large-scale bullish spread trading in Bitcoin this week. Traders bought 20,000 call options contracts expiring on July 31 with a strike price of $70,000, while selling 20,000 call options contracts expiring on the same date with a strike price of $72,000, for a total of 40,000 contracts with a combined notional value of about $2.5 billion. This strategy is a bullish spread, with the expectation that the price of Bitcoin will rise modestly into the $70,000 to $72,000 range.

Deribit Chief Business Officer Jean-David Péquignot said the exchange saw multiple large-scale bullish spread trades this week, and such trades typically reflect institutional positioning.

The timing is worth noting: the July 31 expiration coincides with two days after the July 29 Federal Reserve rate decision, suggesting that some large traders expect the Fed meeting to push Bitcoin up to $72,000. Federal funds futures show a 75% to 80% probability that the July meeting will keep interest rates unchanged.

June inflation data showed that price pressures slowed significantly due to a drop in oil prices, but this week the escalation of tensions between Iran and the U.S. led oil prices to surge. Some analysts warn that the inflation data has lagged behind the latest situation.