Bitcoin surpasses $81,000, while ETH, SOL, and DOGE remain stable as options trading firms anticipate additional price increases.

Bitcoin has risen above $80,000 following a brief dip on Monday related to the disputed missile claim from Iran, while options markets are subtly preparing for a breakout, despite the skew still favoring downside protection.

Key points:

• Bitcoin surpassed $81,000 during Asian trading hours, marking its highest point since late January, even as the overall cryptocurrency market displayed mixed performance and macroeconomic risks continued.
• Options desks that had quietly established cost-effective upside call ratio structures are now positioned to take advantage of a slow upward movement, with a decisive crossing above $80,000 anticipated to shift key risk-reversal metrics into positive territory.
• This change in options pricing occurs amidst ongoing tensions between the U.S. and Iran and a stable central bank policy, with forthcoming U.S. earnings and employment data viewed as potential triggers for additional bitcoin volatility.

Bitcoin BTC$80,957.04 has just provided the options desks with the breakout they were aiming for.

The leading cryptocurrency surpassed $81,000 during Tuesday’s Asian trading hours, reaching its highest level since late January, an increase from $79,000 at the close of U.S. trading on Monday, and reflecting a 5.3% gain over the week.

Other major cryptocurrencies showed mixed results. Ether remained at $2,379, down 0.1% for the day but up 4.0% for the week. XRP decreased by 0.9% to $1.40. Solana fell 0.9% to $84.84. BNB was at $626. Dogecoin declined by 1.0% to $0.1117 after last week’s surge, yet it remains notable on the weekly chart with a 12.4% increase as futures open interest continues to reach yearly highs.

This movement occurred despite Brent crude oil prices retreating to $113 a barrel after a 5.8% rise on Monday due to the disputed missile claim from Iran, with WTI hovering around $104.

The broader macroeconomic landscape has not significantly improved, even as developments in the ongoing U.S.-Iran situation appear to have less influence on bitcoin.

U.S. naval vessels Truxtun and Mason transited the Strait of Hormuz overnight, providing escort to two U.S.-flagged ships under what U.S. Central Command referred to as “coordinated threats.” An aerial attack targeted a VTTI oil terminal in Fujairah. President Donald Trump indicated to Salem News Channel that the conflict may extend another two to three weeks, suggesting a previously announced four-week ceasefire is beginning to unravel.

Options markets are experiencing increased activity with expectations of rising prices in the near future, as noted by Nomura’s market-making division Laser Digital in a communication with CoinDesk on Tuesday.

Bitcoin’s volatility has been relatively subdued for most of the past week. Traders were not actively seeking options protection, and the price was not fluctuating sufficiently to warrant it. When protection was sought, more was invested in puts (bets on price declines) than in calls (bets on price increases)—a typical strategy in a market that is more concerned about downturns than enthusiastic about upward movements.

However, there has been a quiet interest in inexpensive upside positions, structured through what traders refer to as call ratio strategies. This approach involves purchasing call options that yield returns if bitcoin experiences a modest rally, financed by selling other call options that only pay off if there is a substantial rise. This setup incurs minimal upfront costs and is advantageous if bitcoin gradually increases without exceeding the upper limit.

"If the spot price sees a clear breakout above $80K, the currently negative BTC risk reversal is likely to transition into positive territory," the communication stated.

A risk reversal illustrates the difference in implied volatility between equally out-of-the-money calls and puts. A negative reading indicates that the market is pricing in more fear of a decline than eagerness for a rally.

A shift to positive would signify the first indication that options markets have transitioned from a cautious stance to a more optimistic outlook.

All major central banks maintained their rates last week, which Laser Digital indicated lowers the right-tail distribution of rates and keeps U.S. financial conditions stable. Strategy reports will be released on Tuesday, and the U.S. nonfarm payrolls report is due on Friday. Both of these could influence bitcoin if the surprise is significant enough.