Glassnode Says Bitcoin Options Traders Are Still Positioned For Trouble
Glassnode reports Bitcoin options traders are defensive as BTC drops below $78K.
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Bitcoin tops $79,000 as crypto rally gathers steam; Circle, Coinbase, Strategy lead
TL;DR
Bitcoin surpassed $79,000, marking its highest point since February, with a 4.5% increase in 24 hours. Major altcoins and crypto-linked stocks also experienced significant gains amid a supportive macro backdrop.
Key points
- Bitcoin climbed above $79,000 for the first time since February
- Major altcoins ether, BNB, Solana, and XRP also rose
- Crypto-linked stocks like Strategy and Coinbase saw significant gains
- The broader market, including S&P 500 and Nasdaq, performed well
Mentioned in this story
StrategyCircle InternetCoinbaseMARA HoldingsRiot Platforms
Bitcoin BTC$79,296.86 climbed above $79,000 on Wednesday, hitting its strongest level since early February as a long-awaited breakout attempt gathered momentum.
The largest crypto rose 4.5% over the past 24 hours, leading major altcoins ether (ETH), BNB BNB$650.02, Solana (SOL) and XRP higher. The broad-market CoinDesk 20 Index advanced 3.5%.
Crypto-linked stocks also rose. Strategy (MSTR), the largest corporate BTC holder, jumped 10% while stablecoin issuer Circle Internet (CRCL) gained 9% and crypto exchange Coinbase (COIN) rose 6%. Bitcoin miners MARA Holdings (MARA) and Riot Platforms (RIOT) added 6%-7%.
The broader macro backdrop also turned supportive. The S&P 500 rose 0.9%, and the Nasdaq added 1.3% to record highs, extending the risk-on environment.
The gains followed U.S. President Donald Trump's remark late Tuesday that he would extend the Iran ceasefire while maintaining a naval blockade of the Strait of Hormuz. Still, uncertainty around peace talks remains.
"BTC’s near-term direction remains highly dependent on macro and geopolitical developments," said Paul Howard, a senior director at Wincent. He pointed to $72,000 as key support, with upside potentially could be capped near the $79,000–$80,000 range as traders take profits.
Bitcoin short squeeze potential
While macro risks are still in place, derivatives positioning could fuel the rally higher.
Perpetual swap traders remain heavily skewed bearish, with seven-day funding rates at near three-year lows, noted Vetle Lunde, head of research at K33 Research. At the same time, open interest continues to trend higher, suggesting fresh leverage is entering the market.
BTC price and average perp funding rates (K33)
"Rising leverage alongside deeply negative funding suggests shorts are steadily building in perps, increasing both the likelihood and potential magnitude of a short squeeze," he wrote.
"We continue to see strong breakout potential for BTC, with concentrated shorts providing ample fuel for a move higher," Lunde added.
Q&A
What caused Bitcoin to rise above $79,000?
Bitcoin's rise above $79,000 was driven by a long-awaited breakout attempt and positive movements in the broader financial markets.
Which major altcoins followed Bitcoin's price increase?
Major altcoins that rose alongside Bitcoin include ether (ETH), BNB, Solana (SOL), and XRP.
How did crypto-linked stocks perform during this rally?
Crypto-linked stocks such as Strategy, Circle, and Coinbase saw gains of 10%, 9%, and 6% respectively as Bitcoin's price surged.
