Bitcoin surged past $75,000 early Tuesday, reaching a high of $75,800 amid shifting derivatives market dynamics. The breakout exceeded long-standing resistance between $73,750 and $74,400, which had reversed price trends three times since 2024.
The rally was driven by the unwinding of bearish short positions initiated during February’s sell-off. Traders aggressively sold put options at $55,000 and $60,000 strikes as they deemed downside risks minimal.
"The selling of Bitcoin put options reduces downside hedging pressure and forces market makers to buy BTC to rebalance exposure," said Markus Thielen, founder of 10x Research. This mechanical buying has amplified upward momentum.
Despite the surge, aggressive call buying remains limited, indicating the move is more a result of hedge unwinds than new bullish bets.
The broader crypto market rallied in tandem. The CoinDesk 20 Index rose 5% to 2,202 points. Ether gained nearly 8% to $2,360. XRP and Solana climbed 8% and 4%, respectively. ZEC, PEPE, DOT, and VIRTUAL also outperformed.