Bitcoin Surges Past $70,000 as Derivatives Markets Turn Bullish

Bitcoin rebounded past $70,000 in late August as derivatives markets turned net bullish for the first time in 12 months. This sets up a decisive test against tightening global interest rates.

The recovery pulled the world's largest cryptocurrency out of a multi-month trough near $60,000, even as trading desks price in an 85 per cent probability of a US Federal Reserve rate increase.

Data from options platform Derive.xyz shows the 25-delta skew turned positive on August 20. This pricing shift indicates traders are paying a distinct premium for upside exposure heading into the fourth quarter.