Top Bitcoin traders refuse to turn bullish despite BTC’s 14% rebound: Here’s why

2 hours ago

Key takeaways:

The Bitcoin long-to-short indicator astatine Binance deed a 30-day low, signaling a crisp diminution successful bullish leverage demand.
US-listed Bitcoin exchange-traded funds reversed a antagonistic inclination with $516 cardinal successful nett inflows pursuing a play of dense liquidations.

Bitcoin (BTC) has fluctuated wrong a choky 8% scope implicit the past 4 days, consolidating adjacent $69,000 aft an abrupt descent to $60,130 connected Friday. Traders are presently grappling with the superior catalysts for this correction, peculiarly arsenic the S&P 500 holds adjacent grounds highs and golden prices person climbed 20% implicit a two-month period.

The uncertainty pursuing the 52% retreat from Bitcoin’s $126,220 all-time precocious successful October 2025 has apt prompted an ultra-skeptical stance among apical traders, stoking concerns of further terms declines.

Whales and marketplace makers connected Binance person steadily pared backmost bullish vulnerability since Wednesday. This displacement is reflected successful the long-to-short ratio, which dropped to 1.20 from 1.93. This speechmaking represents a 30-day debased for the exchange, suggesting that request for leveraged agelong positions successful borderline and futures markets has cooled, adjacent with BTC hitting 15-month lows.

Meanwhile, the long-to-short ratio for apical traders astatine OKX deed 1.7 connected Tuesday, a crisp reversal from its 4.3 highest connected Thursday. This modulation aligns with a $1 cardinal liquidation lawsuit successful leveraged bullish BTC futures, wherever marketplace participants were forced to adjacent positions owed to inadequate margin. Importantly, this circumstantial information constituent reflects forced exits alternatively than a deliberate directional stake connected further downside.

Strong ETF request suggests Bitcoin whales are inactive bullish

Demand for spot Bitcoin exchange-traded funds (ETFs) serves arsenic beardown grounds that whales haven’t flipped bearish, contempt caller terms weakness.

Since Friday, US-listed Bitcoin ETFs person attracted $516 cardinal successful nett inflows, reversing a inclination from the erstwhile 3 trading days. Consequently, the conditions that triggered the $2.2 cardinal successful nett outflows betwixt Jan. 27 and Feb. 5 look to person faded. A starring mentation for that unit pointed to an Asian money that collapsed aft leveraging ETF options positions via inexpensive Japanese yen funding.

Franklin Bi, a wide spouse astatine Pantera Capital, argued that a non-crypto-native trading steadfast is the astir apt culprit. He noted that a broader cross-asset borderline unwind coincided with crisp corrections successful metals. For instance, metallic faced a staggering 45% diminution successful the 7 days ending Feb. 5, erasing 2 months of gains. However, authoritative information has yet to beryllium released to validate this thesis.

The Bitcoin options marketplace followed a akin trajectory, with a spike successful neutral-to-bearish strategies connected Thursday. Traders pivoted aft Bitcoin’s terms slipped beneath $72,000 alternatively than anticipating worsening conditions.

The BTC options premium put-to-call ratio astatine Deribit surged to 3.1 connected Thursday, heavy favoring enactment (sell) instruments, though the indicator has since retreated to 1.7. Overall, the past 2 weeks person been marked by debased request for bullish positioning done BTC derivatives. While sentiment has worsened, little leverage provides a healthier setup for sustainable terms gains erstwhile the tide turns.

It remains unclear what could displacement capitalist cognition backmost toward Bitcoin, arsenic halfway values similar censorship absorption and strict monetary argumentation enactment unchanged. The anemic request for Bitcoin derivatives should not beryllium interpreted arsenic a deficiency of confidence. Instead, it represents a surge successful uncertainty until it becomes wide that exchanges and marketplace makers were unaffected by the terms crash.

This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision. While we strive to supply close and timely information, Cointelegraph does not warrant the accuracy, completeness, oregon reliability of immoderate accusation successful this article. This nonfiction whitethorn incorporate forward-looking statements that are taxable to risks and uncertainties. Cointelegraph volition not beryllium liable for immoderate nonaccomplishment oregon harm arising from your reliance connected this information.

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