Institutions Show Limited Confidence in Bitcoin Despite Price Rally

Despite a 7% increase in bitcoin's price since Sunday, conviction in the market remains low, with the recovery slowing near $72,000 ahead of key events such as the US inflation report and US-Iran talks. Institutions are adopting a cautious approach, buying call options to speculate on potential gains while also purchasing downside protection. Demand for call options tied to BlackRock's spot bitcoin ETF and Deribit's $80,000 call option suggests traders expect the price to rise, but the persistence of demand for put options indicates a lingering bias towards protection against declines. The US consumer price index for March is expected to show a significant increase in annualized inflation, driven primarily by rising energy prices, which may lead to market volatility if the core figure exceeds estimates. The outcome of the US-Iran talks and the subsequent impact on oil prices will also be crucial in determining the stability of financial markets and the potential for bitcoin's rally to accelerate.