While Bitcoin shows signs of strength, 21shares suggested that the volatility linked to the “Liberation Day” may have already been priced. With institutional flows remaining strong and inclined derivative markets for optimism, investors are closely watching to see if the BTC can keep the momentum by the end of the week.

Bitcoin shows resilience and volatility on the day of liberation seems priced, according to 21shares

The market is waiting to see the impact of “Liberation Day” on crypto. The 21shares crypto research strategist, Matt Mena, told the benchrypto:

Institutional positioning and recent BTC ETF flows suggest that volatility associated with the “Liberation Day” event was widely priced in markets during the weekend. Bitcoin experienced a marked correction of $ 87,000, breaking briefly below the critical support range of $ 84,000 – $ 85,000, testing the significant level of $ 81,000. However, despite the broader pressures-with S&P 500 struggling to maintain levels above 5,600-Bitcoin demonstrated resilience, recovering approximately 3% within 24 hours, remaining firmly above the $ 85,000 key stand.

Mena also explains that this resilience is aligned with the resilience of BTC ETFs, which saw $ 750 million in entries two weeks ago:

These sustained entries reflect a proactive institutional position and confidence that the potential volatility of liberation day has been anticipated and accounted for. Overall, consistent institutional demand reinforces the maturation of bitcoin as a class of assets, reinforcing the ability to detach itself from the turbulence of the traditional market.

The crypto strategist of 21shares also points out that stable volatility and high interest in CME futures signal growing confidence in Bitcoin’s high potential:

In addition, the open interest in CME’s Bitcoin futures remains high, while implicit volatility has remained relatively stable – suinging that market participants are positioning themselves to the rise rather than preparing for low volatility. This dynamic reflects the growing confidence that any disturbances linked to the day of liberation were digested, leaving the door open to a continuous optimistic impulse if Bitcoin maintains key support levels.

Finally, he argues that BTC ETF options show a strong inclination to calls. Signaling optimistic expectations for a holiday rally:

BTC ETF options data show a remarkable inclination for calls: there are about three times more purchase options than selling options above the current price levels that expire later this week. This imbalance signals that market participants expect Bitcoin to continue the tall trend, with many positioning for a strong closure of the week and more gains by the end of the year.

Bitwise Europe analysts also argue that “Liberation Day” is already priced. “Bitcoin and cryptors have already priced significant fears of recession in the US, but some risk of falling remains if a recession materializes.

However, macroeconomic factors in improvement, declining exchange balances, and strong accumulation trends suggest long -term continuous support for the optimistic path of bitcoin. Macroeconomic conditions in improvement should also improve on-chain activity with a delay, they said in a report on Tuesday.

Nevertheless, experts warn of the potential volatility of the market on “Liberation Day” as investors remain uncertain about the impacts on the crypto market. Bitcoin is being negotiated at 85 thousand, up 1.70% in 24 hours.

Signs of derivatives indicate possible stabilization

Gordon Grant derivatives trader suggests that the market may be entering a short -term stabilization phase as volatility increases and the positioning of options is found after liberation day.

In derivatives, the risk reduction before liberation day has happened and the positioning of options is materially flatter at this point, points Grant.

Grant also addressed market sentiment regarding sight and volatility prices. He pointed out that when the cash market (the current asset price) is falling while volatility is increasing, it sometimes signals a short -term stabilization phase.

According to Trader, this pattern may reflect a “capitulatory demand for volatility”, meaning that after a sharp drop, market participants may have already sold their positions. Which can lead to pricing stabilization.

Grant also explained that the market conditions – which he described as the “marked change in the time -to -curve length of the time and explosion of sales inclinations” – could signal a market correction or even a bear trap if the recent drive towards $ 80,000 from the BTC or the Ethi price drop does not maintain themselves.

Graph of the day

The chances of a recession in the United States in 2025 jumped from 33% on March 28 to 42% today.