Bitcoin Options Skew Reaches Highest Level Since November 2024
Bitcoin options trading on the Chicago Mercantile Exchange (CME) reached its highest bullish sentiment since November 2024. Key points include:
- Traders are purchasing call options, leading to a 4.4% increase in skew.
- Positive skew indicates bullish sentiment, with traders positioning for upside potential.
Bitcoin Price Movement
On Tuesday, Bitcoin's price increased by 5%, surpassing $106,000. This occurred despite President Trump's inaugural speech not addressing cryptocurrency. Notable details include:
- Total inflows into spot Bitcoin ETFs were $802 million, with $661 million from BlackRock's IBIT.
- Institutional backing for Bitcoin and Ethereum reached over $3 billion in four consecutive days.
Key Factors to Watch
Long-term holders of Bitcoin stopped selling, turning the $100,000 resistance into support. Additional insights:
- Bitcoin has remained above $100,000 since January 17, except for one brief exception.
- Long-term holders decreased their holdings from 14.2 million BTC in September to 13.1 million BTC now.
- Bitcoin effectively retested the $101,000 level as support, indicating potential consolidation between $101K and $106K.
Source: Glassnode
Source: Rekt Capital