• Bitcoin price has soared above $52,000 on the back of strong network data.
• Spot Bitcoin ETF impact continues to loom large in the market overall.

Record-breaking inflows into spot Bitcoin ETF products are propelling the leading cryptocurrency to new heights, with Bitcoin potentially on track to breach the $60,000 mark.

Bitcoin Call Options Point to Bullish Sentiment

Amidst this fervent activity, Bitcoin call options, particularly those set to expire at the end of February, are garnering attention, indicating bullish sentiment and a strong belief in Bitcoin’s upward trajectory.

Despite a momentary dip below the $50,000 threshold triggered by the release of fresh U.S. inflation data earlier in the week, Bitcoin has swiftly rebounded, fueled by a flurry of bullish activity in the derivatives market. 

Notably, Deribit data reveals a notable accumulation of open Bitcoin call options at strike prices of $60,000, $65,000, and $75,000 as the February 23 expiration date looms. This accumulation emphasizes the confidence among traders in Bitcoin’s potential to surpass key price levels in the near term.

Jag Kooner, Head of Derivatives at Bitfinex, expatiates on the prevailing market sentiment, highlighting the strategic acquisition of call options at strike prices well above current Bitcoin levels by bullish traders with long-term perspectives. The clustering of Bitcoin call options at $60,000 and beyond reflects a distinct anticipation among market participants regarding Bitcoin’s price trajectory, further reinforcing the prevailing bullish bias.

Market data indicates a notable skew towards long positions, with the overall open interest spread favoring calls at a 0.47 put-call ratio. This sentiment is echoed by Kooner, who observes a put-call ratio of 0.60 in the past 24 hours. Moreover, with options expiring on February 23 exhibiting a similar trend with a put-call ratio of 0.59, the bullish momentum appears poised to persist in the short term.

Surging Inflows into Spot Bitcoin ETF

Amidst this backdrop of fervent derivatives activity, the spotlight shines brightly on spot Bitcoin ETFs, which have experienced a remarkable surge in inflows, catapulting Bitcoin’s price to new heights. 

On February 13 alone, inflows across nine spot Bitcoin ETF products surged to an astonishing $631 million, marking a notable milestone since their launch last month. Notably, BlackRock’s iShares Bitcoin Trust (IBIT) emerged as a frontrunner, attracting a staggering inflow of $493 million, underscoring BlackRock’s dominant position in the market.

The resurgence in inflows into spot Bitcoin ETFs comes amidst a slowdown in outflows from the Grayscale Bitcoin Trust (GBTC), which has remained below $100 million over the past three days. The cumulative net inflows into Bitcoin ETFs now stand at an impressive $3.7 billion, with BlackRock leading the pack with $4.6 billion in net inflows, while GBTC has witnessed $6.5 billion in net outflows.

At press time, Bitcoin continues its upward trajectory, trading at $51,585, marking a 3.3% increase in the past day, with a market capitalization exceeding $1 trillion. Amid the rally, Bitcoin price temporarily breezed past the $52,000 price mark.

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