Large traders have purchased Bitcoin call spreads worth $2.5 billion on Deribit, targeting a price of $72,000 by July 31. The position aligns with the Federal Reserve's interest rate decision scheduled for July 29.
The options trade involves buying 20,000 contracts of the $70,000 call and selling the same number of $72,000 calls, all expiring July 31. Each contract represents one Bitcoin, giving the position a notional value of $2.5 billion.
Jean-David Péquignot, chief commercial officer at Deribit, noted that large blocks in BTC topside call spreads have appeared this week. The strategy is a bull call spread, which limits both cost and maximum gain.
Bitcoin was trading near $64,751 at the time of the report. Markets currently assign a 75 to 80 percent probability that the Fed will keep rates unchanged at its July meeting.
Recent easing in inflation data had reduced rate-hike concerns, though renewed tensions between the United States and Iran have pushed oil prices higher.
