Intensifying Long-Short Game, Options Market Still Betting on $100K End-of-June Target

BlockBeats News, March 21st. According to CoinDesk, the cryptocurrency market experienced a brief euphoria followed by profit-taking after the Federal Reserve's FOMC meeting. Bitcoin fell from a high of $86,000 to below $84,000, with a 3%+ decrease in 24 hours, and Ethereum fell below the $2,000 psychological mark. Despite the overall market pressure, options traders remain optimistic about the mid-term outlook, with the probability of Bitcoin surpassing $100,000 by the end of June increasing from 20% to nearly 30% within 24 hours.

The Federal Reserve kept interest rates unchanged and announced a tapering of quantitative tightening (QT) in April, interpreted as an implicit signal of easing, driving Bitcoin briefly above $85,000. BNB showed resilience with an 8% weekly increase, while XRP's weekly gain narrowed to 4.8%. The options market showed divergence, with Ethereum call options accounting for 60%, indicating a rise in bargain-hunting sentiment; 34% of Bitcoin options trading volume was used for downside protection, intensifying the long-short game. After the brief euphoria, the market returned to rationality, with $80,000 being a key short-term support level for Bitcoin, becoming the focus of a new round of long-short game. The optimistic expectations in the options market and the cautious sentiment in the spot market have formed a delicate balance, with breaking through the moving average resistance potentially becoming a key to trend reversal.