Options data indicates bullish sentiment through increased call option buying and higher implied volatility. This contrasts with Bitcoin’s dominance spike, traditionally a risk-off indicator, creating a market paradox.
Traders might be positioning for a potential “risk-on” shift later in 2025, using options to hedge current Bitcoin-heavy portfolios. The divergence could also reflect institutional interest in derivatives products regardless of spot market trends.
Analysts are monitoring whether the options activity represents smart money accumulation or speculative positioning. Resolution of this tension between dominance and derivatives data will likely determine short-term market direction.
