- Market participants are forming positions on call options for digital gold in the $65,000-$75,000 range, with execution in the second quarter.
- Over the past three days, net inflow into spot Bitcoin ETFs has exceeded $1.5 billion.
In recent days, the volume of open positions on call options expiring in April-June with strike prices of $65,000, $70,000, and $75,000 has increased. This is according to data from the crypto derivatives platform Deribit, as reported by CoinDesk.
Kelly Greer, head of sales for Galaxy in North and South America, explained in an interview that interest in out-of-the-money contracts reflects a strengthening bullish sentiment. She noted that a similar situation occurred before the rally in the fourth quarter of 2023.
Market participants are reducing the impact of overbought conditions from a technical analysis perspective and the potential sale overhang from the bankrupt platform Genesis. The latter plans to liquidate $1.6 billion in Bitcoin, Ethereum, and Ethereum Classic.
On the night of February 13, the price of the leading cryptocurrency surpassed the $50,000 mark. The last time digital gold was valued this high was at the end of 2021.
In less than three weeks, following the approval of spot Bitcoin ETFs, the growth exceeded 30%.
Latest ETF Market Update
The return to a growth trajectory occurred as selling pressure eased in the GBTC from Grayscale.
On February 12, outflows from the product amounted to $95 million after reaching the lowest values since the ETF’s registration — $51.81 million. Net inflow into the instruments showed the fourth-highest value for this period ($493.28 million).
The cumulative net inflow since January 11 reached $3.26 billion.
MN Trading founder Michaël van de Poppe noted that over the last three trading days, net purchases of spot ETFs based on digital gold exceeded $1.5 billion.
The last three trading days the net inflow has equalled to $+1.5B.
Every day +$500M has been flowing into the markets through the Spot #Bitcoin ETFs.
That’s a huge sign.
Institutions are interested, Bitcoin is getting mature, this market is going to accelerate.
— Michaël van de Poppe (@CryptoMichNL) February 13, 2024
“That’s a huge sign. Institutions are interested, Bitcoin is getting mature, this market is going to accelerate,” commented the expert.
Combined with ETP based on the leading cryptocurrency from other countries, issuers have 858,263 BTC at their disposal, equivalent to 4.09% of the current digital gold issuance.
In this regard, asset management companies have outpaced mining firms, sovereign funds, public and private companies.
Crypto trader known as Rekt Capital noted Bitcoin’s transition into a pre-halving rally phase.
Earlier, experts from DecenTrader predicted a sell-off after this event and a new ATH in the fourth quarter.