The derivatives market is pointing to a small chance of further bullish momentum for Bitcoin next month, following the asset’s historic rise above $100,000 last week.
This was stated by Sean Dawson, head of research at derivatives protocol DeFi Derive.
“We continue to see a 10.5% probability of Ethereum reaching $6,000 and a 6% probability of Bitcoin exceeding $150,000 by January 31,” Dawson said. Decrypt.
“As for the 25 delta biases, they have remained stable since last week, showing no significant change,” Dawson added. “It appears the market consolidated its position over the weekend.”
The delta skew of 25 measures market bias between calls and puts, and its stability suggests that traders’ expectations regarding price direction or risk have not changed significantly.
This follows Bitcoin’s rise above its $100,000 price on Wednesday and subsequent significant volatility 12 hours later, which saw the asset fall to an eight-day low of $92,000 .
The price of Bitcoin has since regained some ground, remaining stable on the day at $99,260, according to CoinGecko data.
“The weekend generally results in calmer markets and more moderate price movements,” Dawson explained.
Pointing to factors like MicroStrategy flows and BlackRock IBIT options having an outsized impact on the price of Bitcoin, Dawson said weekend trading “tends to reduce volatility,” giving the market a “chance to stabilize.” “.
Bitcoin has recaptured the imagination of retail and institutional investors after President-elect Donald Trump won a decisive victory in the 2024 election, held last month.
Trump has promised to implement a strategic Bitcoin reserve in the United States while protecting the interests of domestic cryptocurrency mining companies and those offering industry-related services.
Meanwhile, exchange-traded fund flows for major issuers, including BlackRock and Fidelity, continue to post impressive records, with the former becoming the fastest fund in the world to reach $50 billion in assets under management .
“With the market in uncharted territory, we are now in a new price discovery zone,” Singapore-based QCP Capital wrote in a statement. note Wednesday. “We have returned to a binary scenario, where the spot price could either rise or selling pressure could bring it back below $100,000.
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