Traders are getting ready for a big jump in Bitcoin (BTC) prices after President-elect Donald Trump takes office on January 20.

Recent activity in the options market shows a renewed interest in call options priced at $100,000 and $120,000 on the Deribit exchange. This suggests a bullish outlook among traders. According to Amberdata, one trader invested over $6 million in call options with a $100,000 strike price that expire on March 28.

Amberdata points out that this trade signals expectations for Bitcoin to hit new highs shortly after Trump’s inauguration. Plus, traders are also buying call options at the $120,000 strike, which has become the most popular option on Deribit, boasting a notional open interest of $1.52 billion.

A call option gives the buyer the right to purchase the asset at a set price in the future. This reflects a bullish sentiment, as traders expect significant price increases.

This renewed interest comes as Bitcoin tries to reclaim the $100,000 mark. Right now, Bitcoin is trading above $99,500, marking an 8% recovery from its low of $91,384 on December 30, according to CoinDesk and TradingView.

CF Benchmarks, a regulated cryptocurrency index provider, shares a similar view. They caution that any delays in regulatory developments could dampen the positive market sentiment. They believe a restructured SEC, under leadership that supports cryptocurrency, could reduce enforcement risks and encourage innovation, boosting investor confidence.

However, they also note that while an industry framework is expected, any delays or policy changes might create short-term volatility and affect market optimism.

Since Trump’s election victory in early November, expectations for pro-crypto regulatory changes have positively influenced the market. Bitcoin rose from around $70,000 to over $108,000 shortly after the election. But the momentum slowed in late December, likely due to profit-taking and cautious Federal Reserve rate projections.

Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team based in Mumbai. He holds a master’s degree in Finance and is a member of the Chartered Market Technician (CMT) association. Before this, he worked at FXStreet, focusing on currency markets, and served as a fundamental analyst in various brokerage firms in Mumbai. He holds small amounts of Bitcoin, Ether, BitTorrent, Tron, and DOT.