Key Points
- Bitcoin option traders have increased bets on BTC reaching $110K by March-end, despite analysts cautioning of potential losses.
- U.S. spot BTC ETF products experienced over $580M in outflows in the past week.
Bitcoin [BTC] option traders have shown increased optimism, placing bets on the cryptocurrency rallying to $110K by the end of March. However, this bullish sentiment is tempered by analysts who warn of a possible extended sideways trend and potential losses.
Data from the Options analytics platform Amberdata reveals that traders doubled down on their $110K March calls (bullish bets) in February. Despite this, the firm suggests these bets may face losses.
Increased Volatility and Potential Losses
Amberdata’s Greg Magadini attributes his sideways projection to bearish meme-coin headlines and Bitcoin’s tepid response to recent bullish news, such as Abu Dhabi’s significant bid on BlackRock’s IBIT.
QCP Capital, a leading crypto options desk, also supports the extended price range outlook. The firm notes that the market is hesitant to take on decay even at low volatility levels, reminiscent of Bitcoin’s range-bound price action in Q2-Q3 of the previous year.
BTC Dominance and ETF Outflows
Crypto analyst Mathew Hyland warns of a bearish divergence in the weekly chart, suggesting that Bitcoin’s market share may soon decline.
At the time of writing, Bitcoin was valued at $95K and has been below $100K for nearly two weeks. This risk-off sentiment is also reflected in U.S. spot ETF products, which saw combined outflows of $585.65M in the past week. These outflows could potentially limit Bitcoin’s recovery efforts.
