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Bitcoin (CRYPTO: BTC) is expected to remain within a broad trading range of $73,000 to $94,000, making the strategy of selling calls and puts to capture premium particularly effective, according to a recent report by 10x Research analysts.
What Happened: The analysis, which examines market dynamics amid ongoing trade war uncertainties, highlights a lack of clear momentum drivers and shifting investor behaviors in the cryptocurrency space.
The 10x report notes that Bitcoin ETF inflows have been tepid, totaling just $225 million year-to-date as of April, with the potential to turn negative due to market uncertainty stemming from President Donald Trump’s tariff policies.
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This marks the third consecutive month of outflows for Bitcoin ETFs, a trend initially driven by arbitrage-focused hedge funds rather than genuine demand.
Despite this, a new cohort of buyers, wallets holding between 100 and 1,000 BTC, emerged following Elon Musk‘s endorsement of Trump in August 2024, increasing their holdings by 700,000 BTC to 4.6 million to become the largest wallet group.
However, these buyers, likely family offices and asset managers aligned with a pro-crypto stance, have paused accumulation, leaving the market without a dominant marginal buyer.
Analysts at 10x emphasize that this lack of a clear buyer, combined with subdued on-chain data, suggests Bitcoin will not break out of its current range soon.
“We expect Bitcoin to remain within a broad trading range, making the strategy of selling calls and puts to capture premium particularly effective,” the report states, particularly as Bitcoin nears the midpoint of the $73,000 to $94,000 range.
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Why It Matters: The report also highlights weak retail trading volumes and limited fiat inflows, as evidenced by muted stablecoin minting, which further constrains Bitcoin’s upside potential and indicates continued underperformance for altcoins.