While the US government shutdown continues to be the main topic of discussion in cryptocurrency and global markets, the expectation that this shutdown could extend into a third week is growing stronger in the markets.
While the White House warned that a failure to reach an agreement would “cause significant economic pain,” the US government shutdown appears to have benefited Bitcoin the most, with its price rising by nearly 10% since the shutdown began on October 1st.
While there is speculation about whether Bitcoin will continue its rise, bullish sentiment is evident in the options market.
The recent rise has led to an increase in new positions for option investors on the derivatives exchange Deribit, towards the $140,000 level.
According to Coindesk, while new records were coming one after another in BTC, open positions in Deribit were concentrated in call options around $138,000 – $140,000.
Deribit Chief Operating Officer (CCO) Jean-David Pekigno stated that Bitcoin's rise is a result of macroeconomic effects and that the US government shutdown played a major role in the BTC rise.
“The US government shutdown is spurring buying of physical assets like gold and Bitcoin, and the reduction in spot supply and ETF inflows are reinforcing the bullish cycle.”
Deribit COO stated that technical indicators point to an uptrend in Bitcoin and said that the short-term target is $128,000‑$130,000 and the longer-term target is $138,000.
However, the famous name added that there is a risk of correction to 118,000‑120,000 dollars in the short term.
“Technically there is also room for further upside.
The short-term target for Bitcoin is $128,000‑130,000 and if the rise continues, it could rise to $138,000.
However, a short-term correction to the $118,000‑$120,000 range is also possible as BTC has entered the overbought territory.”
*This is not investment advice.