Bitcoin rose by 8% this week and is on track for its first weekly close above $110,000. As European trading begins, its price has hit $118,000. There aren’t any major news events driving this increase, but demand is high. In the first half of the year, many are starting to realize the benefits of diversifying their portfolios away from the dollar, leading to better interest in cryptocurrency and collectibles. We’ve broken away from the slow risk sentiment that characterized much of the first quarter. With Bitcoin around $118,000, its movement shows a clear trend, reflecting a broader shift in capital allocation. Digital assets are receiving more investments than traditional stocks, suggesting a temporary reallocation, especially away from interest rate-sensitive sectors. The raise in Bitcoin’s price isn’t the result of a single event. Instead, it’s part of a changing mindset that has gained momentum this year. Hedging activities have increased as well. Even though there are no clear economic triggers, traders no longer wait for signals from central banks or economic data. They are buying with anticipation, rather than in response. The derivatives markets show this change in attitude strongly. Tail risk pricing has eased, especially for shorter terms, suggesting less front-end volatility. This indicates that traders are increasingly using options to support the upward trend instead of resisting it. The open interest around call options priced between $120,000 and $125,000 shows that there’s more buying interest than protective action. Trading volumes support this trend. Liquidity for top contracts remains solid without significant price discrepancies between bids and asks. It’s not a chaotic surge; rather, it’s stable participation extending further along the pricing curve. This suggests a focus on positioning rather than speculation. Currently, those betting against Bitcoin have limited options. Previous resistance levels have not triggered meaningful pullbacks, adding to the upward momentum. Traders who tried to capitalize on Bitcoin’s strength have been forced to quickly close their positions, contributing to the price surge. We will keep an eye on rollover data and large trader reports from CME for any signs of fragmentation. What’s next? Monitor implied volatility over the week. A steady increase, rather than a spike, could indicate stable holding patterns. Also, pay attention to where delta hedging pressure arises—continued strength in call buying could reinforce this trend through dealer positioning. In the coming days, we will watch how much the flow of convexity can affect day-to-day price swings. Don’t forget to consider performance across different risk assets. If crypto and tech start to show weaker correlations, there may be more interest in non-correlated trades. Keep cross-asset options simple, ensuring clear expiry goals. This market demands decisive actions. A stable price around $115,000–$118,000 in the next few days would strengthen our directional outlook as we approach next month’s expiry calendar. So far, we haven’t seen enough gamma compression to justify shorting options. Instead, strategies that lean toward upward movement seem more effective in this uncertain environment where clarity meets conviction.

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