Bitcoin continues to trade within a narrow range below $100K, with investors increasing their long positions in the options market. The most popular transaction on the Deribit exchange was call options worth $110K expiring on March 28, with over $6 million paid in premiums for these positions.

Bitcoin (BTC) remains in a tight range below $100K amid fluctuations in the memecoin market and macroeconomic uncertainties. Nevertheless, investors are making bold moves by taking bullish positions in the options market in anticipation of potential price increases. According to data provided by Amberdata, the most popular options trade this month on the Deribit exchange was call options worth $110,000 expiring on March 28. Investors paid a total of over $6 million in net premiums for these positions. Call contracts in the options market give investors the right to buy Bitcoin at a predetermined price on or before a specified date, while put contracts are used as a hedging tool against price declines.

WILL THE RISE IN BITCOIN CONTINUE? Greg Magadini, derivatives director at Amberdata, noted in a statement shared with CoinDesk that “we see $110,000 call options as one of the most active trades in March.” Bitcoin mostly traded between $95,000 and $100,000 in March, with positive developments such as MicroStrategy’s ongoing Bitcoin purchases and Abu Dhabi’s $436 million Bitcoin ETF investment keeping the market’s upward expectations alive. However, high inflation data released in the US and extreme fluctuations in the memecoin market are suppressing Bitcoin’s upward momentum. Last week, a token called LIBRA reached a market value of $4 billion, only to lose 90% of its value within minutes. The support of the token by Argentine President Javier Milei and ensuing discussions once again highlighted the overall fragile nature of the market.

“MEMECOIN MARKET IS PRESSURING” Magadini pointed out the lack of price increases despite the positive news surrounding Bitcoin, stating, “Recent developments like the Abu Dhabi investment news have occurred, but we have not seen a significant increase in spot prices. When we combine this with the volatility and low volume in the memecoin market, we can say that Bitcoin is currently in a sideways market.”