As risk appetite recovers in global financial markets, Bitcoin ($BTC) has exceeded the $75,000 mark for the first time in a while. Major altcoins such as Ethereum (ETH) are also showing signs of recovery. Ethereum rose 6.2% to $2,330 in the past 24 hours, while XRP rose 9% to $1.56.
The increase is believed to be due to stronger risk appetite due to a combination of market factors, including a rebound in the Nasdaq index and falling oil prices, but Markus Thielen, CEO of 10x Research, shared his latest analysis.
According to analysts, $BTC This is due to increased sales and liquidations of put options in the options market.
According to Markus Thielen’s analysis, Bitcoin’s recent uptrend was caused by option traders closing put positions.
According to CoinDesk, Thielen believes the rise was influenced by structural changes in put options trading between $55,000 and $60,000.
“The recent rally was primarily due to the expiration of put options with strike prices of $55,000 and $60,000, reducing the probability of realization at expiration.”
Put options are a hedge against falling prices, and investors typically buy them when they expect the market to fall. Related to this, a decrease in put options also indicates a decrease in expectations of a market decline.
In this context, Thielen noted that investors bought a lot of put options during February’s selloff to hedge downside risk. However, as the market stabilized, the probability that these options would be in the money at expiration decreased and investors began closing out put positions.
Thielen argues that this process creates upward momentum because closing put options relieves selling pressure from market makers who are managing risk, forcing them to buy. $BTC By rebalancing the position, ultimately $BTC The price will be higher.
*This is not investment advice.
