Bitcoin derivatives markets reflect a steady stance from traders, although a shift back to $95,000 after a notable $1.58 billion outflow this week hinges on a resurgence of institutional investments.
Market Analysis
Key takeaways:
- Bitcoin funding rates are currently at 7%, indicating that bullish traders are cautious in increasing their leveraged positions.
- Recent ETF outflows of $1.58 billion for Bitcoin, alongside gold reaching record highs, indicates a shift towards safer assets.
Despite a positive economic backdrop, with Bitcoin’s price remaining under $91,000, traders are uncertain if support at $88,000 can sustain through potential bearish momentum.
The annual funding rate for Bitcoin perpetual futures reached 7%, indicating a market recovery from a near-zero state Monday, yet suggests an absence of bullish leverage demand.
Bitcoin Whales to Keep Accumulating
The weak sentiment among Bitcoin traders is fueled by robust economic growth in the US, which registered a 4.4% GDP growth for Q3. However, the demand for options protection against downturns remains lackluster.
Source: laevitas.ch
Data from Laevitas showed that the most common Bitcoin options strategies employed were a long straddle and a long Iron Condor, both aiming for volatility rather than directional gains. This hints that significant market players foresee price accumulation rather than upcoming corrections.
Market focus now shifts to corporate earnings reports from major firms like Microsoft and Tesla next week, which could influence consumer demand and market trends.
Finally, gold rose as US Treasury yields neared 20-week highs, reflecting growing worries about the US economy’s fiscal health. Rising yields typically indicate diminished demand and expanded borrowing costs.
Ultimately, Bitcoin derivatives showcase resilience after retesting $88,000 despite an alarming trend of outflows from Bitcoin ETFs. A recovery towards $95,000 is heavily reliant on forthcoming institutional investments.
