A mysterious Bitcoin whale spent $23.7 million betting that BTC would reach $200,000 by the end of the year

Despite Bitcoin (BTC) recently fluctuating between $116,000 and $120,000, market bullish sentiment remains undiminished. A mysterious Bitcoin whale recently executed a complex options strategy, betting that BTC will surge to $200,000 by year-end. Pure market observation, not investment advice, DYOR.

This whale employed a complex Call Spread strategy, buying 3,500 call options expiring in December with a strike price of $140,000 on the Deribit platform, while simultaneously selling 3,500 Short options contracts with a strike price of $200,000, requiring an initial net expenditure of approximately $23.7 million.

According to Deribit Insights, this $140,000/$200,000 spread contract strategy limits maximum profit potential while also constraining risk. If BTC breaks $200,000 before the December contract expires, the investor can realize maximum profit.

This spread strategy works by purchasing call options with lower strike prices to participate in potential upside while selling call options with higher strike prices to reduce costs. Although the initial premium paid is higher than the premium received, both profit and loss spaces are limited, representing a controlled risk speculative operation.

What is a "Call Spread"?

A Call Spread is a common options trading strategy suitable for investors wanting to invest while controlling risk. This strategy involves simultaneously buying a call option with a lower strike price and selling a call option with a higher strike price, both with the same expiration date. The purchased option provides profit opportunities when prices rise, while the sold option offsets some costs and limits potential profit.

In this Bitcoin whale's trade, he bought December call options with a $140,000 strike price and sold call options with a $200,000 strike price. This means if Bitcoin's price at expiration is above $140,000 but below $200,000, he will profit. If the price exceeds $200,000, profits will not increase further. If the price doesn't surpass $140,000, he will lose the initial option cost. This strategy's advantage is controlled risk and return, but the drawback is a clear profit ceiling without benefiting from extreme market movements.

Options Market Heats Up, Betting Sentiment Rises

While the spot market enters a consolidation phase, the options market remains vibrant. Bitcoin options' open interest continues near historical highs at 372,490 BTC, slightly below June's record of 377,892 BTC.

Additionally, the Ethereum (ETH) options market is also active. According to Amberdata's data report, ETH options open interest hit a historical record of 2,851,577 ETH. Notably, on Deribit, each options contract represents 1 BTC or ETH.

Deribit currently dominates over 80% of global cryptocurrency options trading volume. As Bitcoin's price steadily rises and market demand for volatility-structured products grows, institutional and whale investors are further driving options market activity.