Analysis: BTC may continue to slump in the short term, and the $110,000 bullish option for BTC has become a popular strategy

PANews reported on February 17th that despite Bitcoin (BTC) continuing to fluctuate narrowly between $95,000 and $100,000 this month, traders remain bullish. According to Amberdata data, the $110,000 call option expiring on March 28th on the Deribit platform has become the most popular trading strategy this month with a net premium paid exceeding $6 million. Greg Magadini, Director of Derivatives at Amberdata stated that Bitcoin's price did not significantly rise due to positive news such as MicroStrategy's continued holdings increase and Abu Dhabi's investment of $436 million in Bitcoin ETF.

Meanwhile, macroeconomic headwinds and the "boom-bust" cycle of small-cap tokens have limited Bitcoin’s upside potential. For instance, a token named LIBRA recently saw its market value soar to $4 billion but plummeted by 90% within minutes. In addition, high inflation data in the United States also put pressure on market sentiment. Magadini pointed out that although there are some positive factors present in the market overall it is showing low volatility and sideways movement due to an increase in altcoin supply and negative news dragging it down. Under these circumstances, he predicts that short-term trends for bitcoin may continue their sluggish performance.