TechFlow News, May 5: According to CoinDesk, Bitcoin broke above $81,000 during the Asian trading session, reaching its highest level since late January—up from Monday’s U.S. market close of $79,000 and marking a weekly gain of 5.3%. Other major cryptocurrencies showed mixed performance: ETH traded at $2,379, down 0.1% on the day but up 4.0% weekly; XRP fell 0.9% to $1.40; SOL declined 0.9% to $84.84; BNB stood at $626; DOGE dropped 1.0% to $0.1117, though its 7-day gain remained at 12.4%, with futures open interest holding near year-to-date highs.
Laser Digital, the market-making arm of Nomura, noted in its report that the options market has recently seen a series of bets on future price increases. Bitcoin’s volatility remained low over the past week, limiting traders’ demand for options-based protection. Yet, many quietly deployed “call ratio” strategies to establish low-cost upside exposure. This strategy involves buying call options that profit from modest price gains while simultaneously selling call options that only pay off upon much larger rallies—thus financing the position at minimal upfront cost, making it ideal for scenarios where BTC rises gradually rather than sharply.
Laser Digital added: “If spot prices decisively break above $80,000, the currently negative BTC risk reversal indicator is expected to turn positive.” The risk reversal indicator measures the difference between the implied volatilities of equally out-of-the-money call and put options. A shift from negative to positive would signal the first sign of a broader shift in options market sentiment—from cautious to bullish.
On the macro front, major central banks held interest rates steady last week. Strategy will release its earnings report on Tuesday, and U.S. nonfarm payroll data will be published on Friday. Significant surprises in either could trigger volatility in Bitcoin.
