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Following weaker-than-expected US CPI and PPI data, Bitcoin rose above $64,000. However, this rise was limited due to selling pressure.
While the market closely watches whether Bitcoin’s rise will continue, a notable shift has been observed in investors’ price expectations in the Bitcoin options market.
Bitcoin Expectations Revised!
This shift is seen as a significant positional change that could slow $BTC’s rise above $70,000, while the most popular call option strike price in the $BTC options market dropped from $80,000 to $70,000.
According to open interest data, call options with a strike price of $70,000 are currently the most popular contract, with $1.63 billion in open interest.
Thus, call options, which had been the most popular call option for the past six months at $80,000, dropped to $70,000. This $10,000 decrease indicates that investors have revised downwards the price level they expect Bitcoin to reach in the near term.
Data also shows that put options with a strike price of $60,000 are the most actively traded bearish contracts. According to analysts, this indicates that investors are considering the $60,000-$70,000 range as a baseline price for Bitcoin in the short term.
Speaking to Coindesk, Imran Lakha, founder of Options Insights, analyzed that market makers are highly likely to hedge against selling risk above the $70,000 level to maintain their neutral positions.
“This hedging acts as a brake, limiting how quickly Bitcoin’s price can rise after it climbs,” said Lakha, noting that this could trigger hedging sales during price increases and limit the speed of $BTC’s rise after it surpasses $70,000.
Expectations of Bitcoin Reaching $70,000 are Increasing!
In addition, Greeks.live analyst Adam stated that there was a sharp increase in bulk call option trading in Bitcoin today, with a total of 25,766 $BTC call options traded, with a nominal value of approximately $1.65 billion.
He stated that the most preferred of these call options were those with strike prices of $70,000/$72,000 that expire at the end of the month.
The analyst noted that these transactions, occurring approximately two weeks before expiry, reflect the market’s positive outlook for Bitcoin’s short-term performance. However, the analyst also pointed out that investors are opting for low-cost bullish spread strategies rather than directly taking high-risk long positions. This indicates that while bullish expectations remain, investors are adopting a more controlled and cautious approach.
Consequently, movements in the options market are closely monitored as a key indicator of the short-term direction of the Bitcoin price, with the $70,000-$72,000 region standing out as a critical level for investors.
*This is not investment advice.