Options data reveals that Bitcoin traders have stopped chasing the previous record-breaking price rally.

Bitcoin (BTC) continues to reach new all-time highs, but options data reveals that traders are showing a more measured level of optimism, signaling that the bullish sentiment may not be as intense as it once was.

On Monday, Bitcoin broke through the $107,000 mark, surpassing its previous peak from December 5, pushing the post-U.S. election rally to a more than 50% gain, as reported by CoinDesk. This surge follows President-elect Donald Trump’s announcement that the U.S. plans to establish a Bitcoin reserve, similar to its oil reserve. Experts predict that the upward momentum will continue into 2025, with potential price targets ranging from $150,000 to $200,000 by the end of next year.

However, despite the price rally, options markets show signs of traders not chasing the uptrend with the same urgency they did in previous months. According to current data from Deribit, the 25-delta risk reversal for options expiring on Friday is negative, indicating a higher demand for put options (protecting against price declines) than for calls. Puts expiring on December 27 are trading at a slight premium compared to calls, and the risk reversal extending to March shows a much smaller call bias—only three volatility points. This contrasts sharply with the aggressive call biases observed over the past few weeks, where both short-term and long-term call options showed a much stronger demand for upside exposure.

Recent trades tracked on Deribit by Amberdata further underscore the cautious sentiment. The largest trade so far today involved a short position in the December 27 call at the $108,000 strike, alongside long positions in $100,000 strike puts expiring on December 27 and January 3.

This hesitation among traders could stem from speculation that the Federal Reserve may signal a slower pace of rate cuts in 2025 while still enacting a widely expected 25 basis point cut. Such actions could potentially strengthen the dollar and push bond yields higher, making riskier assets like Bitcoin less appealing. As a result, more sophisticated Bitcoin traders may be positioning themselves for a possible correction, reflecting a shift in sentiment compared to the height of the recent rally.