Bitcoin rocketed 15% to get back above $70,000 but the options market is currently pricing in a terrifying new floor
Bitcoin rebounded above $70,000 after a sharp drop, but derivatives data suggests the rally may only be a pause before another potential decline.Summary
Bitcoin experienced a violent 15% rebound, surging from near $60,000 back above $70,000 after a brutal drawdown. This reversal was driven by cross-asset stabilization, as tech stocks and precious metals snapped back, combined with forced rebalancing from liquidated leveraged positions, rather than a surge in conviction-driven spot demand. The initial selloff was triggered by weakening risk sentiment and policy concerns regarding Federal Reserve liquidity. Despite the bounce, the derivatives market remains bearish; options positioning shows heavy put interest concentrated between $50,000 and $60,000 for late February expiry, indicating traders are hedging for another leg lower. For $70,000 to hold as a sustainable floor, the macroeconomic rebound must persist, leverage must continue to cool without fresh selling, and miner stress must ease. However, persistent ETF outflows suggest institutional de-risking continues, meaning the $70,000 level represents a pause where the market will test whether spot demand can sustain the price against embedded downside hedging.
(Source：CryptoSlate)