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Bitcoin just surged past $75,000. Derivatives seem to be driving the rally
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Mar 17, 2026
Bitcoin's move, led by unwinding of shorts, has lifted the broader crypto market, with the CoinDesk 20 Index up 5%.
The so-called bullish breakout happened as traders closed bearish short positions initiated during the early February sell-off.
"In bitcoin, the recent move has been driven largely by sizable put selling around the $55,000 and $60,000 strikes, as traders increasingly recognized that these options were unlikely to expire in the money with only days remaining. The unwinding of these downside hedges has contributed to the latest bullish price action," Markus Thielen, founder of 10x Research, said in a note to clients.
A put option is a derivative contract that gives the right to sell the underlying asset, in this case, BTC, at a fixed price before a certain date. Traders buy puts when they think the price might fall or when they want protection against losses. It's basically an insurance against price drops, while a call option provides upside exposure.
The unwinding of these bearish bets also has second-order bullish effects.
"The selling or closing of Bitcoin put options reduces downside hedging pressure and forces market makers to buy BTC to rebalance their exposure, creating supportive flows that can push prices higher," Thielen said.
CoinDesk warned last week that the rally could accelerate as prices near $75,000, largely due to market makers' expected hedging activities.
So far, however, there has not been a significant upside call buying. This suggests the move has so far been driven more by hedge unwinds than by aggressive bullish positioning, Thielen explained.
Altcoins surge
Bitcoin's rally has lifted the broader crypto market, with the CoinDesk 20 Index gaining 5% to 2,202 points over the past 24 hours.
Ether (ETH) has gained nearly 8% to $2,360, helped by increasing demand for bullish options bets. XRP (XRP) and solana (SOL) have gained 8% and 4%, respectively.
Sources >> Bitcoin just surged past $75,000. Derivatives seem to be driving the rally
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