Crypto market maker B2C2 has reported an increase in bullish bets on Bitcoin, with options traders showing a positive outlook for the cryptocurrency. Traders have been engaging in more upside call buying, indicating their belief in a rising Bitcoin price. Calls on the crypto derivatives platform Paradigm suggest a potential increase to $29,000 in the coming weeks. Additionally, interest in Bitcoin has seen a surge, accounting for 58% of all buying interest and 40% of the overall volume. This rise in activity is attributed to the anticipation surrounding the approval of a spot Bitcoin ETF. While most applications have been delayed until January 2024, analysts estimate a 75% chance of approval by the end of the year.
Furthermore, traders are closely watching the upcoming decision by the US Securities and Exchange Commission (SEC) on whether to appeal Grayscale's win in August. The SEC's changed approach to spot Bitcoin ETF applications, actively engaging with issuers through comments, indicates that an appeal or denial is unlikely. As a result, traders are hesitant to short Bitcoin due to the potential positive impact of ETF catalysts. However, while Bitcoin remains favored, Ethereum has experienced pressure, and investors are cautious about going long on it unless there are changes on the risk front or with the protocol itself. An increase in Ethereum transactions could potentially improve its outlook.