Bitcoin is set to potentially exceed $80,000, fueled by bullish derivatives markets and substantial ETF inflows. Bitfinex analysts point to a surge in call options and growing optimism surrounding the upcoming U.S. presidential election as key drivers behind the anticipated rally.

Bullish Signals from Derivatives Markets

The crypto exchange Bitfinex has informed Cointelegraph that there are strong indications from the derivatives markets and holder profitability that Bitcoin's value might rise above $80,000 by the end of 2024.

According to Bitfinex analysts who spoke with Cointelegraph, the structure of the derivatives markets suggests that the price of Bitcoin might be approaching $80,000 soon. The options markets, in particular, are indicating that there is a possibility of a rally following the US election. They tacked on:

“Options market positioning indicates that over the past few weeks, end-of-year options have seen a significant rise in call open interest. The December 27th expiry and calls with an $80,000 strike price have been the primary areas of interest.”

Bitcoin Nears All-Time Highs

Bitcoin's price was just 3.77 percent lower than its all-time high of over $73,800 on October 28th, marking the first time it had surpassed the $70,000 psychological obstacle since June 10th.

Perhaps the US presidential elections next week will provide the next big signal that could trigger Bitcoin's historic post-halving surge, which is what investors are waiting for.

Buyers of Bitcoin exchange-traded funds (ETFs) are feeling more optimistic about the impending elections, which could lead to an increase in Bitcoin's price.

Record Inflows into Bitcoin ETFs

According to data compiled by Farside Investors, US Bitcoin ETFs saw net positive inflows of more than $479 million on October 28. This was the second day in a row that the amount was more than $400 million.

According to an Oct. 29 X post by ETF Store president Nate Geraci, Bitcoin ETF inflows have been strong over the last 12 trading days, topping a cumulative $4 billion:

More than $2.6 billion of these inflows throughout the past two weeks have gone into BlackRock's IBIT ETF, according to Geraci.

Investor Optimism on the Rise

Bitfinex analysts noted that the increasing odds of former president Donald Trump winning the US presidential election on November 5 have been positively associated with risk assets such as Bitcoin.

The fact that nearly all Bitcoin holders are currently making money as the price of Bitcoin soared past $71,000 has boosted confidence among crypto investors.

Data from CryptoQuant shows that as of October 29th, more than 97.6% of Bitcoin holders have made a profit.

After all, the price of Bitcoin dropped from nearly $71,100 to under $56,000 in just one month on June 5, the last day that more than 97% of the supply was in the green.