Bitcoin (BTC) options on the Chicago Mercantile Exchange (CME) have reached their most bullish levels since the November 2024 U.S. presidential election, signaling growing optimism among traders. Renewed inflows into Bitcoin exchange-traded funds (ETFs) are further fueling expectations of new price highs for the world’s largest cryptocurrency.
Bullish Options Activity
On Tuesday, CME’s bitcoin options market showed heightened bullish sentiment, with traders flocking to purchase call options—derivatives offering the potential for asymmetric upside exposure. The 30-day topside skew, a measure of the difference in implied volatility between calls and puts, hit 4.4%, its highest level since early November, according to data from CF Benchmarks.
“This reflects a strong bullish sentiment, with traders actively positioning for upside exposure across both short- and long-term maturities,” said Thomas Erdösi, head of product at CF Benchmarks.
Bitcoin Price Rises Above $106K
Bitcoin’s price surged 5% on Tuesday, briefly topping $106,000 after buyers successfully defended the $100,000 support level. The rally occurred despite President Donald Trump’s inaugural speech on Monday, which omitted any mention of cryptocurrency or Bitcoin as part of a strategic reserve.
ETF Inflows Drive Momentum
The rally was bolstered by renewed demand for U.S.-listed spot Bitcoin ETFs, which saw a cumulative net inflow of $802 million on Tuesday. BlackRock’s IBIT ETF led the way, attracting $661.8 million, according to data from SoSoValue.
“ETF inflows have continued their impressive accumulation streak, marking four consecutive days of significant inflows, amounting to over $3 billion for Bitcoin alone,” said Valentin Fournier, an analyst at BRN. “This robust institutional backing could propel digital assets to new highs.”
Ethereum (ETH) spot ETFs also saw inflows, with $74 million recorded on the same day, further highlighting strong investor interest in the broader crypto market.
HODLing Strengthens
Blockchain data from Glassnode indicates that long-term Bitcoin holders—wallets that have kept coins for over 155 days—are reducing profit-taking activities. This trend suggests confidence in continued price appreciation.
Outlook for Bitcoin
While volatility might moderate later in the month, analysts expect the bullish sentiment in the options market to persist. “The skew for topside will probably remain, barring any surprise policy developments. This will likely provide continued upward price pressure for the foreseeable future,” Erdösi noted.
Conclusion
With strong options market activity, significant ETF inflows, and reduced selling pressure from long-term holders, Bitcoin appears poised for further gains. Analysts suggest these factors could pave the way for the cryptocurrency to test new all-time highs in the coming weeks.
