A surge in Bitcoin—largely driven by the unwinding of bearish derivatives positions—has lifted the broader digital asset market, pushing the CoinDesk 20 Index up დაახლოებით 5%.
Bitcoin vaulted past $75,000 early Tuesday, hitting a session high near $75,800 and decisively breaking above a key resistance band between $73,750 and $74,400. That range had capped rallies several times since 2024, making the breakout a notable shift in market momentum.
The advance appears to have been fueled by traders closing out short positions established during February’s sell-off. According to Markus Thielen, significant put selling around the $55,000 and $60,000 strike levels played a central role. With expiry approaching and prices holding well above those levels, traders increasingly viewed those options as unlikely to finish in the money, prompting a wave of hedge unwinds.
Put options—contracts that give holders the right to sell BTC at a predetermined price—are commonly used as protection against downside risk. During the February downturn, traders accumulated these positions aggressively as bitcoin briefly approached $60,000 on some platforms. As sentiment improved, those hedges became less necessary, leading to a reversal in positioning.
The unwinding of these bearish bets has also created additional upward pressure. As Markus Thielen explained, closing downside hedges reduces selling pressure and forces market makers to buy bitcoin to rebalance their exposure, generating supportive flows that can extend the rally.
Analysts had flagged the $75,000 level as a potential trigger for accelerated gains due to such hedging dynamics. So far, however, there has been limited evidence of strong call option demand, suggesting the move is being driven more by short covering than by new bullish positioning.
Bitcoin’s strength has spilled over into the wider market. Ethereum has climbed nearly 8% to around $2,360, supported by increased interest in bullish derivatives. XRP and Solana have added roughly 8% and 4%, respectively.
Other notable gainers include Zcash, Pepe, Polkadot and Virtuals Protocol, all of which have outperformed during the latest market upswing.
