In a whirlwind of market activity, Bitcoin is once again capturing the attention of investors as it surges towards new highs, driven by unprecedented inflows into spot ETFs and a surge in bullish sentiment among traders.

Despite a brief dip below the $50,000 mark earlier in the week, Bitcoin has rebounded vigorously, fueled by a flurry of activity in the derivatives market. Notably, call options set to expire at the end of February are attracting significant attention, with traders showing a strong belief in Bitcoin’s upward trajectory.

Data from derivatives platforms like Deribit reveals a substantial accumulation of open Bitcoin call options at strike prices ranging from $60,000 to $75,000, signaling a widespread anticipation among traders for further price appreciation.

Market data indicates a notable skew towards long positions, with the overall open interest spread favoring calls at a 0.47 put-call ratio. Kooner observes a put-call ratio of 0.60 in the past 24 hours, echoing the sentiment. Moreover, with options expiring on February 23 exhibiting a similar trend with a put-call ratio of 0.59, the bullish momentum appears poised to persist in the short term.

Bitcoin ETF Inflows Soar to New Heights

Against this backdrop of fervent derivatives activity, the spotlight turns to spot Bitcoin ETFs, which are experiencing a remarkable surge in inflows. On February 13 alone, inflows across nine spot Bitcoin ETF products skyrocketed to an astonishing $631 million, marking a significant milestone since their launch last month. Notably, BlackRock’s iShares Bitcoin Trust (IBIT) emerged as a frontrunner, attracting an impressive inflow of $493 million, underscoring BlackRock’s dominant position in the market.

This resurgence in inflows comes amidst a slowdown in outflows from the Grayscale Bitcoin Trust (GBTC), which has remained below $100 million over the past three days. The cumulative net inflows into Bitcoin ETFs now stand at an impressive $3.7 billion, with BlackRock leading the pack with $4.6 billion in net inflows, while GBTC has witnessed $6.5 billion in net outflows.

Bitcoin’s Price Continues to Surge

At press time, Bitcoin continues its upward trajectory, trading at $51,585, marking a 3.3% increase in the past day, with a market capitalization exceeding $1 trillion. Amid the rally, Bitcoin briefly breezed past the $52,000 price mark, indicating the resilience of the cryptocurrency in the face of market fluctuations.

The surge in Bitcoin’s value is not only attributed to the derivatives market but is also fueled by the overwhelming confidence of investors in spot Bitcoin ETFs. The combination of these factors has created a bullish atmosphere, propelling Bitcoin to new heights and leaving traders and enthusiasts alike eagerly anticipating the breach of the $60,000 milestone.

Jag Kooner, Head of Derivatives at Bitfinex, explains that bullish traders are strategically acquiring call options at prices well above current levels, indicating a long-term perspective on Bitcoin’s potential growth. This sentiment is echoed by the market data, which indicates a notable skew towards long positions, with a 0.47 put-call ratio favoring calls.

Simultaneously, the spotlight shines on spot Bitcoin ETFs, which have witnessed an unprecedented surge in inflows, propelling Bitcoin’s price to new heights. Inflows across various spot Bitcoin ETF products soared to a staggering $631 million on February 13 alone, with BlackRock’s iShares Bitcoin Trust (IBIT) leading the pack with a $493 million inflow.

The surge in spot ETF inflows comes amidst a slowdown in outflows from the Grayscale Bitcoin Trust (GBTC), signaling a shifting landscape in the cryptocurrency investment space. The cumulative net inflows into Bitcoin ETFs now stand at an impressive $3.7 billion, with BlackRock emerging as a dominant player in the market.

At the time of reporting, Bitcoin continues its upward trajectory, trading at $51,585 with a market capitalization surpassing $1 trillion. The cryptocurrency’s price briefly surpassed the $52,000 mark, further fueling optimism among investors and traders alike.

In conclusion, Bitcoin’s resurgence in both the derivatives and spot ETF markets underscores the growing confidence in its long-term potential. With record inflows into spot ETFs and bullish sentiment prevailing in call options, Bitcoin appears poised for further gains in the near term.