2
7
The leading cryptocurrency, Bitcoin (BTC), rose by approximately 2.6% in early Asian trading, climbing above $90,000.
With this rise, Bitcoin is repeating the price movement seen the day after Christmas, and the question is whether it can make a sustained break above $90,000.
At this point, Singapore-based cryptocurrency analytics firm QCP Capital said that reduced liquidity due to the holiday continues to disrupt price movements.
Analysts noted that the recent surge above $90,000 was driven more by spot and perpetual option purchases than by liquidation in futures contracts, likely supported by renewed institutional demand.
According to QCP, post-expiration positions also changed after $26 billion worth of Bitcoin and Ethereum options expired last Friday.
At this point, analysts noted that Deribit’s perpetual option funding rates had risen above 30%, indicating that brokerage firms were short in an uptrend gamma position.
QCP analysts noted that a sustained break above $94,000 could increase hedging demand, adding that December’s $85,000 put options were not renewed and open positions decreased by approximately 50% after expiration.
This indicates that downside hedging among options investors has decreased, but bullish confidence remains weak as open positions have fallen sharply.
Analysts concluded that capital is sitting idle and that the net direction for Bitcoin and the market is likely waiting for liquidity to return.
*This is not investment advice.
cryptobriefing.com
coindesk.com