Bitcoin (BTC) has remained largely stagnant this month, trading within a narrow range of $95,000 to $100,000. However, this hasn’t stopped traders from placing bullish bets on BTC options, with a strong focus on the $110K call expiring on March 28.
According to Deribit options flow tracked by Amberdata, traders have spent over $6 million on this call option, signaling optimism despite market sluggishness.
Traders Favour $110K Call Options
A call option gives its buyer the right (but not the obligation) to purchase BTC at a predetermined price before the expiry date. Buying calls indicates a bullish outlook, while put options reflect a more defensive stance.
Greg Magadini, director of derivatives at Amberdata, noted that buying the March $110K calls has been the most popular trade so far this month.
Mixed Signals: Institutional Buys vs. Macroeconomic Pressures
Bitcoin bulls have drawn confidence from several key developments:
- MicroStrategy continues accumulating BTC, maintaining its aggressive investment strategy.
- Abu Dhabi announced a $436 million investment in Bitcoin ETFs, further supporting institutional adoption.
However, broader macroeconomic headwinds have limited BTC’s upward movement. Hotter-than-expected U.S. inflation data last week raised concerns about tighter monetary policies, potentially capping Bitcoin’s rally.
Memecoin Volatility Adds to Market Uncertainty
Adding to the uncertainty, the boom-bust cycles of memecoins have introduced fresh volatility. Over the weekend, a token called LIBRA surged to a $4 billion market cap before collapsing by 90% within minutes. The token’s brief success was fueled by a promotion from Argentina’s President, Xavier Milei, who later backtracked, sparking controversy and legal challenges.
Magadini pointed out that such events, combined with the growing supply of altcoins, have kept BTC trading sideways with lower volatility.
What’s Next for Bitcoin?
While bullish traders continue to bet on a breakout, BTC’s near-term price action remains uncertain. The combination of institutional investments, macroeconomic pressures, and memecoin market turbulence suggests that Bitcoin might stay range-bound unless a major catalyst shifts momentum.
With March $110K call options leading the trading activity, the next few weeks will reveal whether BTC finally makes a move or continues its sideways drift.
