Bitcoin Options Surge as Traders Hedge After $100,000 Milestone
Bitcoin surged above $100,000, prompting some options traders to hedge against potential losses. There has been an increase in demand for put options, which allow the holder to sell at a specified price within a set period of time.
Despite the recent gains in cryptocurrencies, this signals a cautious sentiment.
Demand for hedging Bitcoin options continues to increase over 24 hours
Data comes from coin glass Put options with strike prices of $95,000 and $100,000 recorded the highest open interest in the past 24 hours.
Additionally, there was increased demand for lower strike prices, including $75,000 and $70,000. These positions are mainly concentrated around expiration in early 2025.
However, regarding Bitcoin Options Exchange In Deibiti, total open interest in put options remains significantly lower than total open interest in call options expiring over the same period.
Bitcoin’s historic surge to $100,000 The event was fueled by President-elect Donald Trump’s optimism late Wednesday Appoint a pro-crypto SEC chairman and Putin’s endorsement of cryptocurrency. The rally brings Bitcoin to a nearly 50% surge since the election, and Bitcoin ETF inflows hit record high.
Meanwhile, bullish positions also surged as traders used leverage Bitcoin Momentum. Financing rates, a key measure of cryptocurrency market leverage, are near all-time highs.
This ratio reflects the premium traders are willing to pay for perpetual contracts futures contracts, a popular mechanism for amplifying directional bets on the price of Bitcoin.
Short-term pullback?
Historically, increases in financing rates often precede market adjustments. Bitcoin There are already signs of softening. Prices fell 3% in the past hour, trading above $98,000. This pattern mirrors previous bull cycles, where sharp gains were followed by periods of consolidation or pullbacks.
At the same time, Bitcoin’s Relative Strength Index (RSI) Has dropped to 53. relative strength index It is a momentum indicator that measures the speed and magnitude of price changes.
A reading of 53 indicates a neutral position, indicating that Bitcoin is currently neither overbought (above 70) nor oversold (below 30). This level reflects balanced market sentiment without strong buying or selling pressure.
Depending on other market factors, traders may interpret this as a pause in momentum, signaling potential sideways movement or uncertain direction in the short term.
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