HomeNewsBitcoin Bulls Unleashed: Options Market Predicts $60K Rally Amidst Record Inflows

Bitcoin Bulls Unleashed: Options Market Predicts $60K Rally Amidst Record Inflows

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  • Record inflows into Bitcoin ETFs could indicate an increase in institutional demand for cryptocurrencies.
  • The Bitcoin options market shows a clear uptrend, with call options concentrated at higher levels.

Bitcoin ETFs experienced a remarkable surge in inflows on Tuesday, February 13, reaching an impressive $631 million in a single day. This increase probably represents the largest single-day inflows since the launch of Bitcoin ETFs last month.

Data provided by Farside Investors reveals that BlackRock’s iShares Bitcoin ETF (IBIT) alone posted a staggering $493 million in revenue that day, far outpacing all of its competitors. In second place, Fidelity posted revenue of $163 million.

On the other hand, GBTC’s outflows have also slowed and remained below $100 million for the last three days of this week. So far, net inflows into Bitcoin ETFs total $3.7 billion.

Asset management giant BlackRock has seen net inflows of $4.6 billion, while GBTC has seen net outflows of $6.5 billion.

Bitcoin options investment points to a rally toward $60,000

Bitcoin options data suggests widespread optimism among traders, with a particular focus on strike prices above $50,000 .

Although the cryptocurrency dipped below this level on Tuesday following the release of new U.S. inflation data, a buildup of open Bitcoin call options is seen at prices of $60,000, $65,000 and $75,000 as the month-end expiration on Feb. 23 approaches.

Source: Farside Investors

Jag Kooner, Head of Derivatives at Bitfinex, noted that as the market attempts to break above the crucial psychological level of $50,000, numerous bullish traders with long-term perspectives are acquiring cheap call options set at strike prices above Bitcoin’s current levels.

The concentration of Bitcoin call options at the $60,000 strike price and beyond indicates that a portion of market participants harbor a distinct interest or anticipation that the Bitcoin price will surpass this level before the month-end expiration date.

The total supply of BTC is limited and pre-defined in the Bitcoin protocol at 21 million, with the mining reward (how Bitcoins are created) decreasing over time. This graph shows how many Bitcoins have already been mined or put into circulation. Source: blockchain.com

Options market biased towards long positions

The Bitcoin options market continues to show a clear bias towards long positions, with a put-call ratio of 0.47 in the overall open interest and a put-call ratio of 0.60 in the last 24 hours. This trend extends even into options expiring on February 23, with a ratio of 0.59.

Bitcoin call options ahead of February’s end-of-month expiration concentrate at strike prices above the $50,000 mark. Image: Deribit

This tilt toward long positions in the options market suggests widespread optimism about Bitcoin’s upside potential in the short to medium term.

The record increase in Bitcoin ETF inflows and widespread optimism in the options market could be indicative of an upcoming rally in the BTC price towards the $60,000 mark, offering a positive outlook for investors and traders in the crypto sector.

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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: [email protected] Phone: +49 160 92211628