Bitcoin Futures Are Bearish Despite Inflows of ETFs

Takeaways from the conference:

• Bitcoin futures premium fell to a three-month low even though prices were only 8% off their high.

• BTC metrics are now bearish despite macroeconomic pressures and stock market stability.

BitcoinBTCThe derivatives indicators are flirting towards bearishness even though BTC is trading only 8% under its historic high of $103,300. The short temper of cryptocurrency traders is well-known, particularly those who trade leveraged positions in futures. But the lack of optimism at this time seems unusual.

Is the drop in BTC to $102,400 due to a deteriorating macroeconomic condition?

Bitcoin derivativesIt could simply be because of the unstable socio-economic situation.

Under neutral conditions, monthly Bitcoin futures To compensate for the long settlement period, traders typically set their prices 5% to 15 % above those of spot markets. The indicator remains below neutral since the rejection on June 12, after the level of $110,000.

Even though Bitcoin was trading at $105,450 on 5th June, the metric is worse than it was two weeks ago. On Thursday the premium for futures fell below 4%, which was its lowest value in over three months. BTC’s futures are now at levels lower than those recorded early April, during which Bitcoin lost 10% in just 24 hours and reached $74,440.

Bitcoin Options Markets can be used to confirm if the fear is only confined to futures monthly contracts. If traders expect a crash in the price, they will pay a premium for put options (sell). This increases the skew value above 5%. In contrast, when the market is bullish, this indicator will tend to fall below -5%.

Bitcoin’s options skew currently stands at 5%. This is right on the border of neutral and bearish sentiment. The indicator was at a bullish level of -5% on June 9 after Bitcoin rose from $105,500 up to $110 500. It shows that traders are growing increasingly frustrated with Bitcoin’s performance.

Investor sentiment was impacted by tensions in Middle East, but the Russell 2000 US Small-Cap index maintained its 2,100 level. Recession risks Interest rates in the United States remain at a level above 4,25 %, despite persistent pressures from inflation.

Related: Bitcoin rally to $120K possible if Fed eases rates due to tariff and war impact

Bitcoin: Institutional appetite is high, but not as strong as derivatives markets

Cryptocurrency trades are often known to exhibit emotional swings. They may sell out of panic in times of uncertainty or display excessive optimism when bull markets rise. Bitcoin derivatives’ current weakness suggests that traders aren’t confident in the $100 support.

The demand from institutional investors has been strong throughout this time. US-listed Bitcoins spot exchange-traded funds In the thirty days ended June 18, (ETFs), recorded net inflows of $5.14 billion. In addition, companies such as StrategyMetaplanet H100 Group The Blockchain Group BTC in large quantities during that period.

There is no way to know what will help restore trust among Bitcoin investors. The longer BTC stays close to the psychological $100,000 level, however, the more bearish the traders will be.

The article does not provide legal advice or investment recommendations and it is intended for informational purposes only. This article is solely for informational purposes. It does not represent or reflect Cointelegraph’s views.