Bitcoin tops $75,000… “Driven by short-covering in derivatives markets”

Bitcoin (BTC) extended its rally, breaking above $75,000. The move is seen as being driven by rapid unwinding of bearish bets in the derivatives market, which helped propel prices higher.

According to CoinDesk on the 16th (local time), bitcoin rose intraday to as high as $75,800, breaking through the $73,750–$74,400 resistance zone that had capped gains on three occasions since 2024.

Analysts say the latest rise was largely influenced by an increase in put option selling and liquidations in the options market. Markus Thielen of 10x Research explained, “The recent rally reflects large-scale unwinding as the likelihood that put options with strikes at $55,000 and $60,000 would finish in the money before expiry diminished.”

Put options are a hedging tool against price declines, and investors typically buy them when they expect the market to fall. However, as recent market stability reduced the likelihood of a downturn, existing positions were liquidated, adding upward pressure, according to the analysis.

In particular, the put-option liquidation process is also seen to have further lifted prices as market makers bought bitcoin to balance positions in a “hedge rebalancing.”

Still, some caution that the rally’s staying power is uncertain, as it has been driven more by the unwinding of existing bearish bets than by aggressive new buying. In fact, clear signals of strong bullish positioning—such as a surge in call option buying—have yet to emerge.

Altcoins also strengthened alongside bitcoin. Ether (ETH) rose about 8%, while XRP (XRP) and Solana (SOL) gained 8% and 4%, respectively.