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A $68 million bitcoin bet is targeting a post-midterm election breakout to $90,000

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A $68 million bitcoin bet is targeting a post-midterm election breakout to $90,000

This is an excerpt from CoinDesk newsletter 'Daybook.' Sign up here, if you haven't already.

Bitcoin BTC$84,459.46 is trading pretty much where it was on Saturday, around $80,000, offering little news on the price front. Most of the other major cryptocurrencies, including ether ETH$2,490.55, XRP (XRP), solana (SOL) and dogecoin DOGE$0.08295, BNB BNB$748.57, are equally listless.

In contrast, options trading on decentralized platform Derive is offering some excitement. The platform told CoinDesk that one trader took $68 million bet that BTC's spot price would climb above $90,000 just after U.S. mid-term elections in early November. There has also been an increase in bets implying market prices will top $100,000 by Christmas.

First, the $68 million trade. On Oct. 20, a single wallet bought 800 contracts of $90,000 call options expiring on Nov. 6 on Derive. Each contract represents one BTC.

“That's approximately $68 million in face value at current Bitcoin prices – the largest open Bitcoin position on Derive,” the exchange told CoinDesk.

A call gives the holder the right, but not the obligation, to purchase the underlying asset at a predetermined rate on or before a specific date. That’s locking in the right to buy at today's price in the future. Even if it costs more when the date arrives, you still get to buy it at the agreed price.

The position was not simply bought outright. The wallet sold 400 contracts of $100,000 calls expiring in March 2027 and another 400 contracts of $90,000 calls expiring Oct.


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