Bitcoin, Ethereum Poised for Potential Rally as Options Traders Signal Bullish July

VISI.NEWS | BANDUNG - After a turbulent June marked by geopolitical tensions in the Middle East, Bitcoin briefly dipped below $100,000 before rebounding to $109,000 on the back of positive sentiment. As July begins, crypto investors are positioning for a potential breakout, with market signals pointing toward renewed bullish momentum. According to Sean Dawson, head of research at derivatives platform Derive.xyz, a noticeable drop in implied volatility for both Bitcoin (BTC) and Ethereum (ETH) throughout June has led options traders to anticipate a sharp upward move in July. He told The Block that key dates such as June 13 and 22 saw significant dips in both assets, coinciding with heightened geopolitical instability. However, Dawson notes, those pullbacks proved short-lived. "Spikes in short-term volatility didn’t translate into sustained downtrends," Dawson said. "Markets effectively priced in a limited decline, and that’s what we saw — a quick recovery." The sentiment is reflected in the crypto options market. While Bitcoin's outlook appears more balanced, Dawson highlights that Ethereum is seeing more pronounced bullish activity. Approximately 80% of July call options for ETH are set above the $3,000 mark, indicating strong investor conviction in upward movement. For Bitcoin, the market is approaching a potential inflection point. Dawson pointed out that nearly half of BTC’s open options expiring on July 25 are call positions at strike prices between $130,000 and $135,000, while the other half are in puts targeting $85,000 to $90,000. “This kind of options positioning typically precedes a significant breakout,” Dawson explained. “It shows that traders expect movement — just not sideways.” With macroeconomic factors like Federal Reserve decisions and ongoing geopolitical developments still in play, traders remain cautious but optimistic. Ethereum’s current momentum appears stronger, yet Bitcoin’s options structure suggests a high-stakes setup as July unfolds. @ffr