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Top Bitcoin traders are bullish near record highs. Could $80,000 be next?

BTC futures demand skyrockets to $35 billion, yet option markets remain cautiously optimistic.

Bitcoin reached an all-time high of $73,650 on March 13, surging 44% in 16 days. This rise reflects growing demand for U.S.-listed spot Bitcoin exchange-traded funds (ETFs), which saw a record $1 billion in net flows on March 12. Traders are now speculating whether Bitcoin can hit $80,000, especially as professional traders continue to add bullish leveraged positions.

Some analysts argue that Bitcoin is being used as a hedge against U.S. monetary policy, particularly after a 3.2% increase in the Consumer Price Index (CPI) in February compared to the previous year. This could pressure the U.S. Federal Reserve (Fed) to avoid further interest rate cuts, potentially leading to an economic slowdown. However, if inflation accelerates and the Fed is forced to raise rates, it could negatively impact risk-on assets like Bitcoin.

The recent approval of the U.S. spot Bitcoin ETF in January 2024 has made Bitcoin more accessible to institutional investors. Over the past two weeks, U.S.-listed spot Bitcoin ETFs have attracted nearly $5 billion in capital, solidifying Bitcoin as a top contender for institutional capital. However, some analysts are concerned about excessive leverage in Bitcoin futures, which could lead to liquidations and price corrections.

Bitcoin 2-month options 25% delta skew. Source: Laevitas

Bitcoin’s aggregate futures open interest hit a record $35 billion on March 13. Top traders at crypto exchanges have been increasing their net long positions, indicating bullish sentiment. However, data from Bitcoin options markets shows moderate excitement, with the 25% delta skew hovering around optimistic levels but still within the negative 7% range. This suggests that while there is confidence in Bitcoin’s future price, there is also a balanced outlook for potential upside and downside risks.

Gracie Perez

Gracie Perez has been an editor in the KoinHow team since we started. she holds a degree in Computer Sciences. From 2017, She has pivoted his career towards blockchain technology, with principal interest in writing Cryptocurrency news and different guides. She is also working with different online media outlets.

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