Bitcoin rises above $90,000, options market signals a change in sentiment.

Bitcoin prices surged to over $90,000 for the first time in nearly a week. After experiencing over a month of selling, Bitcoin is regaining lost ground, with widespread risk asset rebounds and reduced volatility providing traders with space to push prices higher. As the market increasingly believes that the Federal Reserve may soon resume interest rate cuts, although the gains are not large, this rise has once again brought higher price levels into focus, with digital assets moving in sync with the stock market. BlackRock's US Bitcoin ETF has attracted new inflows, ending a series of redemptions. Market liquidity remains thin ahead of the Thanksgiving holiday, but with reduced volatility and almost no new evidence of forced selling, bulls seem to be testing whether the worst period of the recent downtrend is over. "The sharp volatility is likely related to holiday markets. Essentially, current liquidity is lower, which means that far less capital is needed to drive market changes," said Kaiko research analyst Adam McCarthy. Bitcoin rose by 4% to $90,460 at one point on Wednesday, reducing its pullback from the historical high just above $126,000 reached in early October to around 28%. Although the drop since the historical high in early October has been as much as 36%, implied volatility has remained under control, reflecting how institutionalization has reshaped risk transmission mechanisms for the token. In the early days of Bitcoin, its value was mainly driven by speculative trading activity from traders seeking to profit from its frequent large price fluctuations. "Recently, the $80,000 high area has acted as a consolidation zone supportit emerged after several weeks of negative downtrend," said Wintermute trading strategist Jasper de Mar. The reversal of bearish sentiment is reflected across the derivatives market. According to Coinglass data, demand for long positions in Bitcoin perpetual futures (a key market for leveraged crypto bets by traders) is increasing, with open interest at a moderate level. Positive funding rates for such contracts indicate that bullish bets have regained dominance after turning negative earlier in the week. According to data from Deribit, a cryptocurrency exchange under Coinbase, the highest open interest is now for call options with a strike price of $100,000, whereas protective put options with strike prices at $80,000 and $85,000 had dominated the market about a week ago. "Over the past few weeks, speculative long positions have decreased significantly, as evidenced by the decline in perpetual contract open interest and funding rates, which has prepared the ground for the crypto market to rise," said Spencer Harlan, Global Head of OTC Trading at cryptocurrency investment firm GSR. In early October, Donald Trump's threat to raise tariffs roiled global financial markets, causing cryptocurrency prices to plummet. This drop wiped out over $1 trillion in digital asset market value and triggered a wave of forced liquidations. Investors now seem to be retesting the market. According to data, Bitcoin exchange-traded funds recorded inflows of about $130 million on Tuesday. However, investors have withdrawn nearly $3.6 billion from 12 publicly listed Bitcoin funds in November, making it the most severe monthly capital outflow since the launch of these products, and a real stress test for the ETF era.