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Is Bitcoin $100,000 Goal In Jeopardy? Options Market Show Increased Downside Protection | Global News Avenue

Is Bitcoin $100,000 Goal In Jeopardy? Options Market Show Increased Downside Protection

This article is also available in Spanish.

Bitcoin (BTC) has experienced a pause in its upward trend over the past month as attention turns to altcoins. Currently trading 3.8% below its all-time high of $99,540, questions are being raised about the sustainability of this growth and the potential for a correction towards the end of the year.

Investors flock to Ethereum and Ripple

Chris Newhouse, Research Director, Cumberland Laboratory, point out While institutional buying pressure remains, especially from companies like MicroStrategy that continue to accumulate Bitcoin, there has been a clear change in capital flows.

Newhouse noted that the broader crypto ecosystem is experiencing a “diversification of capital flows” from institutional and non-institutional players.

This diversification shows that as Bitcoin stabilizes, investor interest is increasingly turning to other digital assets, including Ethereum (ETH) and XRP, which have previously lagged behind Bitcoin.

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Expectations for more favorable U.S. regulations have risen as President-elect Donald Trump emerges as a cryptocurrency advocate and wins. This prompted massive rallies Ripple pricethe monthly time frame increased by 400%.

This optimism is also reflected in record monthly net inflows into Bitcoin and Ethereum exchange traded funds In November, ETFs (ETFs) reached $6.5 billion and $1.1 billion respectively. Bloomberg data shows that the daily subscription volume of the Ethereum ETF hit a record high last Friday.

$2 Billion in Silk Road Bitcoin Moved to Coinbase

In the options market, downside protection for Bitcoin has increased significantly with expiration later this month. at the same time, Bitcoin Futures Exhibiting moderate leverage, it remains relatively sluggish after Bitcoin broke through the $99,000 mark.

Vetle Lunde, head of research at K33, said on-chain data shows that traders who bought BTC in the $55,000 to $70,000 range are now actively realizing profits. “Profit-taking was particularly intense when BTC was trading above $90,000,” Lund said.

Wintermute OTC trader Jake Ostrovskis observed, “There has been a pause in the market over the past 10 days with Bitcoin trading just below $100,000. Volatility levels have compressed slightly, and Bitcoin Coin is in the 64th percentile, while Ethereum is significantly higher, at the 81st percentile.”

This volatility compression suggests traders are cautious in assessing where the market will go next, and Bitcoin could retest lower support on a new wave price actionwhich could jeopardize the goal of reaching the $100,000 milestone by the end of the year.

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Recent developments have increased market uncertainty report Nearly $2 billion worth of BTC previously seized from the Silk Road market has been transferred from a U.S. government wallet to Coinbase, NewsBTC said on Monday.

Such moves often fuel speculation among traders, as similar moves by the U.S. government to massively liquidate holdings contributed to a downward trend in the second and third quarters of this year, when Bitcoin fell more than 20% for two straight months.

Bitcoin
The daily chart shows Bitcoin price consolidating below all-time highs. source: BTCUSDT on TradingView.com

At the time of writing, BTC is trading at $94,480, down 0.5% in the past 24 hours.

Featured images from DALL-E, charts from TradingView.com

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