In Asian trading hours on Tuesday, Bitcoin achieved a milestone by crossing the $81,000 mark for the first time since late January. This marks an increase from Monday’s close at $79,000 during U.S. hours and represents a weekly gain of 5.3%. While Bitcoin soared, other major cryptocurrencies experienced varied movements; Ether maintained its price around $2,379 with a slight decrease of 0.1% for the day but increased by 4.0% over the week. XRP dipped by 0.9% to reach $1.40, while Solana fell by 0.9% to settle at $84.84. Binance Coin held steady at $626, and Dogecoin receded by 1.0% to $0.1117 after last week’s surge, still marking a significant weekly rise of 12.4%, supported by year-high futures open interest.
This upward trajectory in Bitcoin occurred despite Brent crude oil prices moderating just to $113 per barrel following a 5.8% spike on Monday due to Iran’s controversial missile claim, with WTI hovering near $104.
Despite the ongoing geopolitical tensions between the U.S. and Iran losing some influence over Bitcoin, the broader macroeconomic landscape remains unchanged. The situation intensified as two U.S.-flagged ships navigated the Strait of Hormuz under escort from destroyers Truxtun and Mason, amid ‘coordinated threats’ reported by the U.S. Central Command. Additionally, an aerial attack struck a VTTI oil terminal in Fujairah. President Donald Trump commented to Salem News Channel that the conflict might extend another two to three weeks, signaling a potential unraveling of a previously declared four-week ceasefire.
Options markets are buzzing with activity, as indicated by Nomura’s Laser Digital arm, which noted increased bets on higher prices in forthcoming days. Despite low volatility throughout much of the past week and limited interest in options protection due to stagnant price movements, there has been notable demand for inexpensive upside strategies through call ratio trades. These involve purchasing call options that profit from minor Bitcoin rallies while simultaneously selling other calls that only yield returns with significant rallies—a strategy costing almost nothing upfront.
The risk reversal metric, which measures the difference in implied volatility between out-of-the-money calls and puts, currently reflects more concern about potential price drops than optimism for a rally. A shift to positive would signal a fundamental change in market sentiment from cautionary to optimistic.
With major central banks maintaining existing interest rates last week, Laser Digital suggests this keeps U.S. financial conditions stable, reducing the likelihood of significant rate fluctuations. Upcoming economic indicators, including Tuesday’s strategy reports and Friday’s U.S. nonfarm payrolls data, have the potential to influence Bitcoin prices significantly if they reveal unexpected results.