The Bitcoin market is experiencing renewed activity. The leading cryptocurrency is currently trading above $99,000. During this time, the market shows an optimistic outlook, with buy options concentrated around $110,000 and $120,000 levels. The rising activity ahead of Donald Trump’s presidential inauguration signals both positive expectations and potential pullback risks.
Strong Bullish Signals Emerge in Bitcoin Options
After dipping to $91,000 at the end of December, Bitcoin has recovered, reaching $99,000. The open position on buy options for $120,000 contracts on Deribit has hit $1.52 billion, reflecting strong bullish expectations from traders. The put-call ratio dropping to 0.24 indicates that the market is inclined toward upward movement.
According to a report by Amberdata, Trump’s inauguration on January 20th will act as a positive catalyst for Bitcoin. The report highlights that potential economic announcements at the event could trigger a market rally.
A Deribit investor has made a $6 million investment in $100,000 call options expiring at the end of March, reflecting confidence that Bitcoin could reach six-figure values in the near future. Amberdata’s report also states that these investments indicate market participants are preparing for new all-time highs.
Optimism in the Market Supported by Institutional Investors
The increasing interest from institutional investors is also bolstering the market’s optimism. Last week, a $900 million inflow to US Bitcoin ETFs was a clear indicator of this trend. Major players such as BlackRock, Fidelity, and Ark Invest continue to play an active role in the Bitcoin market.
What Levels Are Next For Bitcoin With Positive Liquidity Conditions?
Bitget Analyst Ryan Lee noted that the $3 billion increase in the total market cap of stablecoins is boosting confidence. Lee expects Bitcoin to trade within the range of $92,000 to $110,000 until Trump’s inauguration. He also predicts that Ether will move between $3,400 and $3,900.
Some analysts, however, expect a market downturn after the inauguration. Former BitMEX CEO Arthur Hayes argued that post-inauguration expectations could be disappointing, leading to significant selling pressure. As the expectations surrounding the Trump era continue to shape the Bitcoin market, investors remain alert to both bullish and risk scenarios.
CryptoQuant Analyst Crazzy Block Observes Decline in Profitability for Short-Term Investors
Analyst Crazzy Block from CryptoQuant has observed a decline in profitability for short-term investors. Bitcoin’s failure to recover its all-time high (ATH) of $108,000 has resulted in a significant drop in profitability. When the profitability of short-term holders (STH) falls, it suggests weakening market demand. This is also considered a sign that could increase the likelihood of a short- to mid-term downtrend. A decrease in demand increases the possibility of a price correction. However, the long-term growth potential of Bitcoin is still seen as strong.
In summary, while profitability for short-term investors has decreased, the market remains strong. Given the bullish expectations of investors, the likelihood of a significant short-term correction seems low. As reported by Kriptokoin.com, large-pocket investors are supporting this outlook.
