Bitcoin rose above $81,000 during Asian hours on Tuesday, reaching its highest level since January of the year. The price, which was at $ 79,000 at the close of the US markets on Monday, increased by 5.3 percent on a weekly basis.
Mixed trend in markets
In other major cryptocurrencies, prices moved in different directions. Ethereum is holding at $2,379, down 0.1 percent on the day but up 4 percent for the week. XRP fell 0.9 percent to $1.40. Solana lost 0.9 percent to $84.84. The price of BNB was recorded as $626. Dogecoin, on the other hand, lost 1 percent to $ 0.1117 after the rise last week. However, it continues to attract attention with an increase of 12.4 percent in the last seven days. The open position amount of Dogecoin futures remained at the highest levels of the year. CryptoAppsy According to data, as of Tuesday morning, Bitcoin exceeded $ 81,000.
Geopolitical developments and macroeconomic environment
The movement in Bitcoin occurred despite global geopolitical and economic developments. While the barrel price of Brent oil fell to 113 dollars after the 5.8 percent rise on Monday, the US type WTI moved around 104 dollars. Following Iran’s controversial missile announcement, risks in the region escalated. US Navy warships Truxtun and Mason accompanied two US-flagged ships by passing through the Strait of Hormuz at night. US Central Command stated that they organized this transition due to “coordinated threats”. Additionally, an oil terminal in Fujairah was attacked by air.
US President Donald Trump said in a statement to Salem News Channel that conflicts in the region could continue for two to three more weeks. Thus, it was stated that the previously declared four-week ceasefire was also disrupted.
Price expectations are rising in the options market
Following the rise in Bitcoin, liveliness was also observed in the option markets. Nomura’s market maker Laser Digital, in a note shared with CoinDesk, stated that positions for higher prices have increased in the coming days. While volatility remained low in the last week, investors were willing to pay more for options that protect against sharp declines in price. In the overall market, the fear of decline rather than rise was dominant.
“In contrast, there has been a quiet demand for low-cost upside bets. Investors buy call options that pay when Bitcoin rises slightly, and fund those trades by selling other calls that pay when Bitcoin rises slightly. Thus, the strategy is virtually free if the price does not break through the upper band,” it said.
The risk reversal indicator has turned negative; This shows that the market is more worried about the decline than the rise. If this indicator turns positive, it will be the first signal of a transition from cautious mood to a more constructive expectation in the market.
The fact that all major central banks left interest rates steady last week also ensured that US financial conditions continued in the current range. Important developments of the week include the balance sheet announcements of some major companies on Tuesday and US non-farm employment data to be announced on Friday. Surprise data may increase volatility in Bitcoin again.
