Bitcoin Price Stability Does Not Curb Interest in ETFs and Positive Trader Sentiment

• Bitcoin ETFs show resilience with significant volumes, countering the lack of BTC price movement.
• Bullish trader sentiment and anticipation of Bitcoin halving drive crypto market.

Interest in Bitcoin exchange traded funds (ETFs) continues to rise despite the lack of movement in the value of BTC. Investors maintain a positive outlook despite the uncertainty surrounding the leading cryptocurrency.

Bitcoin has been fluctuating in the $40,000 to $43,000 range for an extended period, which has generated negative sentiment among many about BTC’s future direction. However, Bitcoin ETFs continue to attract investors, demonstrating solid demand even amid recent market declines. In particular, ARKB leads in volume, followed closely by FBTC.

The Grayscale Bitcoin Trust (GBTC), which used to be the leading Bitcoin investmentvehicle for institutional investors, has experienced a decline in trading volume, suggesting a shift in investor preference to other ETFs .

This trend signals a shift in the cryptocurrency market, where investors are looking for alternatives to acquire the leading cryptocurrency. If this continued interest translates into increased demand for Bitcoin, it could counter potential downward pressure on its price.

At the time of writing, BTC was trading at $42,984.29 and its price had risen 2.01% in the last 24 hours. The recent drop in its price was not significant enough to break the uptrend that BTC had established by showing higher highs and higher lows in recent months.

However, it is important to note that the current downtrend in BTC’s Relative Strength Index (RSI) suggests a lack of immediate upside momentum.

Traders remain optimistic

In terms of trader sentiment, it was noted that 22,000 BTC options were about to expire. The Puts to Calls Ratio (PCR) is a measure of the ratio of bearish options (puts) to bullish options (calls). In this case, it stood at 0.66, suggesting a higher proportion of bullish sentiment among traders.

The Maxpain point was at $42,000, i.e., the price at which the fewest number of option holders would incur maximum losses.

If the price stays around this level during expiration, losses would be minimized for most traders. In addition, the notional value of this set of options amounted to $960 million, representing the total value of the options in play.

February 2 options data

• Approaching expiration 22,000 BTC options with a Puts to Calls Ratio of 0.66, a Maxpain point of $42,000 and a notional value of $960 million.
• Approaching expiration 230,000 ETH options with a Puts to Calls Ratio of 0.33, a Maxpain point of $2,300 and a notional value of $530 million.

The cryptocurrency market remained in relative stability during the week, with RV (Volatility Yield) and IV (Volatility Index) rates declining in major terms. Bitcoin ETFs in the spot market are beginning to inject additional capital into the cryptocurrency market as the Grayscale selloff is losing momentum.

Block trades have become more subdued, with some large investors reducing their positions, mostly taking advantage of gains made through bets on ETFs. The next most prominent talking point is speculation around the upcoming Bitcoin halving, which keeps an optimistic tone in the market for this year.