NEW YORK / LONDON (IT BOLTWISE) – Despite a dramatic drop in Bitcoin’s price to $89,000, futures traders remain unfazed. The stability of derivatives markets suggests continued optimism despite significant liquidations being recorded. Analysts are closely monitoring market developments as economic conditions continue to evolve.
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Bitcoin recently tested $89,000 after a failed recovery attempt to $93,500. This move surprised many traders and resulted in $144 million in liquidations from leveraged long positions. Despite the correction, derivatives markets are showing stability, indicating continued bullish market sentiment.
Bitcoin’s monthly futures premium remained near 4% above spot markets on Wednesday, slightly below the 5% level considered neutral. Some analysts argued that the indicator briefly turned negative when Bitcoin traded below $89,200, but aggregate data from major exchanges suggests the opposite. A discount in futures contracts typically signals excessive confidence from bears.
To assess whether retail traders were more affected by the decline, it is useful to look at perpetual futures. These contracts tend to closely mirror spot markets but use a funding rate to offset leverage. Under normal conditions, buyers (longs) pay between 6% and 12% annualized to hold positions, while values below this range indicate a bearish backdrop.
Trader sentiment was pressured by five consecutive sessions of net outflows from Bitcoin ETFs. More than $2.26 billion has flowed out of these products, creating steady selling pressure as market makers typically spread execution across the trading day. While notable, the number represents less than 2% of the entire Bitcoin ETF market.
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