Bitcoin continues to trade in a tight range below $100,000, with investors increasing their bullish positions in the options market. The most popular trade on the Deribit exchange was for call options expiring on March 28 at $110,000, with over $6 million in premiums paid for these positions.

Bitcoin (BTC) remains in a narrow range below $100,000 due to fluctuations in the meme coin market and macroeconomic uncertainties. However, 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 on Deribit this month was for call options at $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 provide investors with the right to purchase Bitcoin at a predetermined price on or before a specific date. Put contracts, on the other hand, are used as hedging instruments against price declines.

WILL BITCOIN’S RISE CONTINUE? Greg Magadini, Director of Derivatives at Amberdata, noted in a note shared with CoinDesk, “We see that the $110,000 call options were among the most active trades in March.” While Bitcoin mostly traded between $95,000 and $100,000 in March, positive developments such as MicroStrategy’s ongoing Bitcoin purchases and a $436 million Bitcoin ETF investment by Abu Dhabi are keeping market expectations bullish. However, high inflation data reported in the US and extreme volatility in the meme coin market are putting pressure on Bitcoin’s upward momentum. Last week, a token named LIBRA reached a market value of $4 billion, only to lose 90% of its value within minutes. The token’s backing by Argentine President Javier Milei and the subsequent controversies highlighted the overall fragility of the market.

“MEME COIN MARKET IS PUTTING PRESSURE” Despite the positive news for Bitcoin, Magadini pointed out the lack of price increases, stating, “We have seen recent developments such as the Abu Dhabi investment news, but we have not seen a significant increase in spot prices yet. When we combine this with the volatility and low volume in the meme coin market, we can say that Bitcoin is currently in a sideways market.”