Wall Street traders are betting on a rally in cryptocurrencies to end the year.
Despite steadily falling since mid-October, a growing number of traders are betting that crypto prices will rise during the remainder of December as part of a “Santa Claus rally.”
The Bitcoin (BTC) options market, which is where traders bet on future price moves, shows bullish sentiment among traders heading into Christmas.
Data from crypto exchange Deribit shows there’s a growing number of options contracts betting that Bitcoin’s price will reach $94,000 U.S. by Christmas Day on Dec. 25.
The $94,000 level, which is 5% higher than where Bitcoin currently trades, is currently the most popular strike price in Deribit’s options market.
Cryptocurrencies are up to start the holiday-shortened trading week, with Bitcoin hovering around $90,000 U.S.
In addition to Bitcoin, Ethereum (ETH), the second-largest cryptocurrency, is up 1.5% to and above $3,000 U.S. to start the week.
Smaller tokens such as Solana (SOL) and Dogecoin (DOGE) are each up about 1% on Dec. 22.
BTC is down 4% year-to-date.
