Bitcoin Smashes ATH: Traders Scramble to Rewrite the Rulebook as Price Soars
Bitcoin just bulldozed past its previous all-time high—and the market's losing its mind. Here's why this rally isn't your 2021 rerun.
The FOMO is real (and so is the leverage)
Exchanges report record liquidations as overeager bulls pile into overleveraged longs. Meanwhile, OI spikes suggest institutions aren't just dipping toes—they're cannonballing in.
Miners vs. ETFs: The new power struggle
With spot ETFs now swallowing supply like a black hole, hash rate debates take backseat to custody battles. Guess Wall Street finally found a use for blockchain—hoarding.
‘Number go up’ meets ‘now what?’
Technical analysts furiously redraw resistance lines while crypto Twitter argues whether this is ‘true price discovery’ or just hedge funds doing hedge fund things—with your Bitcoin.
The cycle continues: euphoria, panic, repeat. At least the bankers finally stopped calling it a ‘fraud.’ Progress?
Call option buying: Traders eyeing an upside move
According to the 10x Research head, Bitcoin traders are now predominantly buying calls, which could mean there is a sentiment of being “underexposed to further upside.” Market participants may be racing to catch up with Bitcoin’s rally rather than driving it through spot buying.
He also explained that the current market bull run will likely extend into September, especially if upcoming macroeconomic events become favorable.
In the US Consumer Price Index (CPI) report scheduled for release on July 15, economists expect a “benign” CPI print to push people towards buying positions.
The third quarter hasn’t always been Bitcoin’s most favorable time of the year, with an average return of just 5.84% since 2013, according to data from CoinGlass. Still, Thielen is confident this year could be an exception, citing US pro-crypto policy changes and green ETF flows.
“Traders on the sidelines risk missing the MOVE that could define this quarter,” he concluded.
ETF inflows show bulls in control
Even during weeks of consolidation, there was approximately $15 billion in silent accumulation through the US-based spot Bitcoin ETFs. On Wednesday alone, these ETFs attracted $215.7 million in inflows, according to data from Farside Investors.
Traders previously sitting on the sidelines are seemingly being forced to re-enter the market, potentially at much higher prices.
10x Research revealed that it has entered a long position in Bitcoin at $104,000, hedged with a $115,000 call option. The Core position is up by $7,000, but the option has only gained $450 because of the market’s reduced implied volatility and time decay.
Still, Thielen said the trade was performing as expected and will soon transition into a higher trading range.
Ethereum ETFs on a market run
Ethereum surged over 5% on Wednesday, outperforming Bitcoin, Ripple, and Solana. The rally was accompanied by record trading activity in BlackRock’s spot ether ETF, ETHA, listed on Nasdaq.
More than 43 million shares of ETHA changed hands on Wednesday, the highest daily volume since the fund’s debut a year ago. According to Yahoo Finance, that figure nearly doubled the previous day’s volume of 24 million.
TradingView data also shows that ETHA’s 30-day average trading volume is up by 18.83 million shares, up from 12.97 million in the first week of June.
Investor interest has translated into robust capital inflows, with over $1.2 billion added to the fund since June. On Tuesday alone, net inflows reached $159 million, the largest single-day total since June 11, based on SoSoValue data.
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