Dealer hedging could breed volatility at around $70,000, one observer said.

Speculative frenzy characterised by irrational exuberance and greed is an infamous sign of an impending market top.

The BOJ has long been seen as a major source of uncertainty for financial markets, including cryptocurrencies.

Bitcoin traders are having a relook at the $200,000 call option after a gap of nearly three years.

The S&P 500 look expensive relative to bonds, but that does not imply risk aversion or outflow of money from stocks and crypto and into Treasury notes.

Bitcoin's wave 5 impulse move has begun and could see prices top $50,000 by the end of the first quarter, 10x Research's Markus Thielen said, having correctly predicted the recent pullback.

Traders have scaled back bets of aggressive rate cuts by the Federal Reserve ahead of the U.S. GDP report.

Polymarket saw betting contracts worth more than $5.7 million change hands on Wednesday.

Puts are overbought and calls [are] being sold, Deribit's CCO Luuk Strijers told CoinDesk, noting the decline in the bitcoin implied volatility index.

Key indicators tracking Bitcoin's blockchain activity, miner flows and the 200-day moving average suggest bitcoin is far from being overvalued and could continue to rally in 2024.

Increased interest in the three-dimensional options market suggests an influx of sophisticated traders in the crypto market.

The bull market has been clearly spot-driven, with all major derivatives data relatively flat, one observer said, adding the rally has limited downside.

The Fed is priced to be the most dovish among advanced nation central banks in 2024, with traders anticipating at least 100 basis points of interest-rate cuts.

The pullbacks have become less deep over the past three weeks, suggesting the building up of bullish sentiment, one observer said.

It appears bitcoin holders are not planning on offloading inventory at these price levels or any time soon, one observer said.

Order book liquidity refers to the capacity to trade quickly at quoted prices.