Key Points
- Bitcoin options trading on the Chicago Mercantile Exchange (CME) shows the highest bullish sentiment since Trump’s 2024 election victory.
- Bitcoin price surpasses $106,000 with strong ETF inflows, despite no mention of cryptocurrency in Trump’s inaugural speech.
The bullish sentiment in Bitcoin options trading on the CME hit an all-time high on Tuesday, a level not seen since Donald Trump’s election victory in November 2024.
Data from CF Benchmarks, a digital assets index provider, reveals traders are increasingly purchasing call options. This has resulted in a 4.4% surge in skew, the highest since November 2024. The skew measures the difference in implied volatility between calls and puts, with positive values indicating a bullish sentiment.
Bitcoin Price and ETF Inflows
Bitcoin price on Tuesday rose by 5%, briefly exceeding $106,000. This happened despite the absence of any mention of cryptocurrency or a strategic Bitcoin reserve in President Trump’s inaugural speech.
Simultaneously, spot Bitcoin ETFs saw robust inflows. On Tuesday, the total inflows into spot Bitcoin ETFs reached a massive $802 million, with $661 million coming from BlackRock’s IBIT alone. BRN analyst Valentin Fournier commented via email that Bitcoin and Ethereum are receiving strong institutional backing, which could propel digital assets to new highs.
Bitcoin’s Future Outlook
Long-term Bitcoin holders appear to have halted their selling, turning the previously psychological $100,000 resistance level into support for the first time. Except for one brief instance, the leading cryptocurrency has stayed above $100,000 since January 17. In September, this group possessed 14.2 million BTC, but now holds 13.1 million BTC.
Bitcoin’s recent price action continues to draw attention, with a harsh rejection from the Range High. However, the key takeaway from the latest movement is that Bitcoin has effectively retested the $101,000 level, marked by the red diagonal and black Range Low, as support.
This confluent support may serve as a solid floor for future price action, setting the stage for potential consolidation within the current $101K to $106K range, according to market analyst Rekt Capital.
