Having made a strong start to the new year, Bitcoin (BTC) exceeded the $ 100,000 level but could not maintain this level and fell to the $ 93,000 band.
In recent weeks, long-term Treasury yields in the U.S. have reached multi-month highs amid economic data suggesting that inflation remains stubbornly high. In particular, the yield on the 10-year inflation-indexed note rose to 2.29%, the highest since November 2023. This rise in yields is reducing investment in riskier assets as fixed-income assets become more attractive.
“The decline in Bitcoin this morning is a result of higher yields in the Treasury market and the decreasing likelihood of further rate cuts this year. Crypto assets typically perform better in more liquid market conditions,” said Thomas Erdosi, product manager at CF Benchmarks. Erdosi also noted that there is a short-term negative in the crypto market due to macroeconomic pressures.
Hope Remains in BTC Options Market
Despite macroeconomic pressures, Bitcoin’s Deribit-listed options market remains bullish. According to Amberdata data, the total value of active call options in the Bitcoin options market is $14.87 billion, almost twice as much as active put options. This suggests that investors are still bullish on the market.
The most popular call option is the call option at $120,000, with an open position value of $1.47 billion. Call options at $101,000 and $110,000 also have open positions exceeding $1 billion. In contrast, the most popular put option, the $75,000 put option, has an open position of $595 million. This indicates an optimistic trend in the options market.
Trump’s Influence is Expected
Erdosi stated that the possibility of President Donald Trump, who will take office on January 20, creating a crypto-friendly regulatory environment could positively affect market sentiment. It is suggested that this situation could create a chance for recovery in the market, especially towards the end of January.
But in the short term, Bitcoin and other risk assets are expected to continue to be affected by macroeconomic factors such as rising Treasury yields and the Fed’s hawkish stance. A similar effect was observed in the stock market, with major indexes such as the Nasdaq and S&P 500 shedding their gains from the start of the year.
Stay tuned