Bitcoin Traders Exhibit Caution Amid Market Volatility
- Bitcoin (BTC) price stagnated near $70,000 after failing to reclaim $75,000, marking two days of net outflows from US-listed Bitcoin ETFs.
- There were $254 million in net outflows from Bitcoin ETFs, insufficient to indicate a bearish trend.
- Demand for put options on Deribit was nearly 2.5 times higher than call options on Friday, signaling increased bearish sentiment.
- The Bitcoin options delta skew stood at +16%, indicating traders’ concerns about the price holding above $69,000.
- WTI oil prices have risen over $94 since March, contributing to inflationary pressures and affecting economic growth expectations.
Traders are increasingly cautious as macroeconomic conditions worsen due to high oil prices and geopolitical tensions in the Middle East. This environment has led to a rise in demand for downside protection through derivatives.
With Bitcoin underperforming the S&P 500 by approximately 17% over three months and recent ETF outflows totaling $254 million, market sentiment remains notably bearish. (Source)
