Bitcoin (BTC) trades less than 5% from the highest level of $ 109,500, but the permanent contract’s demand for leverage is balanced between Long (buyer) and shorts (sellers). This may be related at first, but the possibility of modification does not necessarily increase to less than $ 100,000.
Bitcoin permanent future funding ratio, 8 hours. Source: COINGLASS
Exchange charges long or shorts to compensate for the imbalance of leverage demand. In the balanced market, eight hours of financing fees have been incurred over the last few weeks. In the period of excitement, this ratio can promote more than 0.20% of 1.8% a month.
The adoption of SPOT BITCOIN ETFs and corporate companies has reduced the influence of retail investors.
As the start of the SPOT BITCOIN Exchange Transaction Fund (ETF) and the adoption of BTC reserves by companies increased, the effects of retail investors were reduced. In the context, SPOT BTC ETF has 6.7%of the total bitcoin supply, while Microstrategy, Mara Holdings, Tether, Tesla and Coinbase control additional 4.3%.
Institutional demand for Bitcoin futures has soared, accounting for 85%of the monthly futures market. Meanwhile, Cryptocurrency exchange, such as Binance, BYBIT and OKX, continues to dominate permanent contracts, a favorite tool among retailers. This change emphasizes the decrease in retail participation in the discovery of Bitcoin prices.
Bitcoin Gift Monthly Monthly Contract Interest, USD. Source: LAevitas.ch
CME’s $ 18 billion stake in CME’s monthly BTC FUTURES has become an important benchmark, and global hedge funds and investment banks offer a regulated gateway for exposure to Bitcoin. This device promotes both long and short positions while ensuring liquidity and access to leverage.
Similarly, the launch of SPOT BITCOIN ETF in early 2024 introduced investors of new classes, including pension funds, asset managers and retirement savings accounts. The tool has exceeded $ 120 billion in managed assets, strengthens market liquidity, improves price discovery, and supports the development of ETF options listed in NYSE, CBOE and NASDAQ.
SPOT BITCOIN ETF is not directly connected to the price of Bitcoin, but the success of the stock and debt of MicroStrategy has created an alternative fluid channel. As a result, as Norwegian sovereign asset funds can be seen in the recent $ 500 million investment, investors have lowered their barriers to Bitcoin ETFs.
Rather than focusing on future demand, traders should analyze the Bitcoin option market to measure professional feelings about potential stagnation. The 25%DELTA SKEW Metric (PUT -CALL ratio) is generally the range of -6%and +6%in the neutral market, and in this range, it moves under this range.
Bitcoin option 25% DELTA SKEW (PUT-CALL). Source: LAevitas.ch
Between January 21st and January 27, whales and market manufacturers showed optimism about Bitcoin’s price, but the emotions were more balanced after BTC reorganized the level of $ 98,000. Currently -5% Delta Ski reflects the medium -level optimism and represents a favorable environment for potential Bitcoin prices.
But everyday price modifications often lead to liquidation, so excessive trust can be a warning signal. As Bitcoin has been able to carry out 25%of import tariffs in Canada, Mexico and China on February 1, Bitcoin’s self -imposed decision on February 1, as Bitcoin approaches the ideology, some of the investors. Hesitate.
relevant: Bitcoin’s February momentum depends on the labor market data next week.
In addition, concerns about major global companies, especially Apple’s profits, contributed to uncertainty. The rise of China’s DEEPSEEK AI model has strengthened the question of capital spending in the US technology sector. As a result, Bitcoin investors can pay attention to the wider economic slowdown and prefer cash positions and short -term government bonds.
Ultimately, the lack of excessive strong feelings in Bitcoin derivatives is not a sign of weakness, but rather a wide range of marketism beyond the cryptocurrency sector.
This article is for general information purposes and should not be considered legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.