Bitcoin derivatives show a lack of confidence from bulls
High correlation to stock markets and recession risks limit optimism on the part of BTC investors.
Auto Added by WPeMatico
High correlation to stock markets and recession risks limit optimism on the part of BTC investors.
Backwardation reflects a market condition wherein spot prices trade higher than future prices.
ETH price hit resistance at the $1,600 level, but this is not stopping options traders from opening fresh leveraged longs.
Data shows investors jumping back into fiat and a lack of bullish leverage in the crypto market suggests another correction is in the making.
BTC derivatives used by whales and market makers do not support a continuous price recovery above $24,000.
Bitcoin’s failure to break above $22,000 on July 8 opened room for bears to score a $100 million profit in this week’s options expiry.
BTC bulls think the bottom is in, but a neutral-to-bearish price formation and the absence of a futures premium contradict their optimism.
Bitcoin’s derivatives metrics reflect slight improvements since the $17,600 low, but whales and market makers continue to price higher risk of another breakdown.
Traders brace for more bad news after headlines revealed that Voyager Digital had lent $655 million to Three Arrows Capital. Is another crypto market sell-off on the way?
Risk-averse BTC derivatives traders throw in the towel after futures contracts trade below the spot market price.