In a Lethargic Bitcoin Market, BTC $110K Option Play Emerges as Top Trading Strategy

Bitcoin (BTC) has been comparatively listless this month, hunching beneath $100,000. However, this hasn't deterred traders from continuing to stake bullishly connected the starring cryptocurrency.

This month's astir preferred options play has been buying the $110,000 telephone expiring connected March 28, with buyers paying a cumulative nett premium of implicit $6 cardinal for the bullish exposure, according to the Deribit options travel tracked by Amberdata.

A telephone enactment gives the purchaser the close but not the work to acquisition the underlying plus astatine a predetermined terms connected oregon earlier a circumstantial date. A telephone purchaser is implicitly bullish connected the market, portion a enactment purchaser is bearish, looking to hedge downside risks.

"Looking astatine the month-to-date flows for on-screen traders… the buying of March $110K calls has been the astir progressive trade," Greg Magadini, manager of derivatives astatine Amberdata, said successful a enactment shared with CoinDesk.

Bitcoin has mostly traded wrong a constrictive scope of $95,000 to $100,000 this month. The bulls person had immoderate affirmative developments to chew on, similar the continued accumulation by MicroStrategy and Abu Dhabi's caller reveal of a $436 cardinal concern successful the bitcoin ETFs.

However, renewed macroeconomic headwinds, highlighted by past week's hotter U.S. ostentation data and predominant liquidity drains caused by the boom-bust cycles of memecoins and different small-cap tokens, look to beryllium capping the upside potential.

Over the weekend, a token called LIBRA zoomed to a marketplace cap of implicit $4 billion, lone to erase 90% of that wrong minutes. Argentina's President, Xavier Milei, initially promoted the coin precocious Friday but backtracked successful a fewer hours, causing a contention that has him facing ineligible issues successful his location country.

"Some bullish headlines deed for BTC past week, but that didn't materialize into immoderate existent spike higher for spot prices," Magadini said, referring to Abu Dhabi's investment.

"Combine this quality with bearish memecoin marketplace resistance (a root of bearish headlines) specified arsenic the $Libra drop, pump-fun mania and increasing proviso of alts [altcoins] and I spot this marketplace successful stand-still. Together, this reinforces my 'sideways' market, little volatility marketplace thesis," Magadini added.