On Tuesday, bitcoin (BTC) options trading on the Chicago Mercantile Exchange (CME) showed the strongest bullish sentiment since Donald Trump’s election victory on November 5.
Traders rushed to buy calls or options that offered asymmetric upside exposure, pushing the bias to 4.4%, the highest since early November, according to data tracked by digital asset index provider CF Benchmarks. .
Bias is the difference in implied volatility between calls and puts, or options that offer downside protection, with positive values representing bullish sentiment.
“The thirty-day upper bias in the bitcoin options market has reached levels not seen since the November election results,” Thomas Erdösi, head of product at CF Benchmarks, told CoinDesk. “This reflects strong bullish sentiment, with traders actively positioning for upside exposure in both short-term and long-term maturities.”
Bitcoin price rose as much as 5%, briefly topping $106,000 on Tuesday after buyers defended the $100,000 support level even though President Trump made no mention of cryptocurrencies or the strategic reserve of bitcoins in his inaugural address on previous day.
The rebound was accompanied by renewed acceptance of U.S.-listed spot ETFs, which saw cumulative net inflows of $802 million, according to data from SoSoValue. BlackRock’s IBIT alone attracted $661.8 million, helping solidify the bullish sentiment.
“ETF inflows have continued their impressive accumulation streak, marking four consecutive days of significant inflows, amounting to over $3 billion for Bitcoin alone. Bitcoin ($802 million) and Ethereum ($74 million) are receiving strong institutional support , which could push digital assets to new highs,” BRN analyst Valentin Fournier said in an email to CoinDesk.
Additionally, long-term holders (wallets with a history of holding coins for more than 155 days) are reducing their profit-taking activities, according to blockchain data tracking firm Glassnode.
“Looking ahead, volatility levels may moderate slightly towards the end of the month, but we anticipate that the upward bias will likely remain barring any surprise policy developments. This will likely provide continued upward pressure on prices in the foreseeable future,” Erdosi said.
