Bitcoin price weakens, but BTC derivatives remain healthy

Bitcoin (BTC) has struggled to rally above $98,000 from Nov. 25 to Dec. 2, frustrating investors despite achieving a 38% monthly gain. Market participants worry that prolonged consolidation below the $100,000 psychological barrier could embolden bearish strategies to suppress BTC’s price.

Bitcoin 2-month futures annualized premium. Source: Laevitas.ch

Derivatives markets suggest resilience, with traders paying a 17% annualized premium for leveraged positions compared to the BTC spot price. While lower than the 40% levels typically observed during strong bull runs, the current premium reflects healthy bullish demand and does not indicate excessive optimism.

Even though Bitcoin has failed to surpass its $99,609 peak from Nov. 22, derivatives data reveals continued trader confidence. However, questions persist about the sustainability of recent aggressive buying, particularly from spot Bitcoin exchange-traded funds (ETFs), MicroStrategy, and Marathon Digital.

MicroStrategy added 15,400 BTC between Nov. 25 and Dec. 1, using $1.5 billion raised through a stock sale. The purchases were made at an average price of $95,976, increasing the company’s total BTC holdings to 402,100, currently valued at $38.4 billion—a 64% rise.

Similarly, Marathon Digital acquired 6,484 BTC between Oct. 1 and Nov. 30, spending over $600 million at an average price of $95,352 per coin. The firm announced plans to issue $700 million in convertible senior notes, aiming to acquire more Bitcoin while repurchasing existing debt.

It is inaccurate, however, to attribute Bitcoin’s price resilience solely to institutional purchases. Notably, spot ETFs have recorded net inflows of $3.22 billion since Nov. 18, according to Farside Investors. BTC was already trading above $90,000 before these inflows began, underscoring robust demand beyond corporate balance sheet additions.

Bitcoin options and futures indicate market confidence

Bitcoin 1-month put-call options delta 25% skew, %. Source: Laevitas.ch

Bitcoin options markets reflect optimism from whales and arbitrage desks, as put (sell) options trade at an 8% discount compared to call (buy) options….

..

Source

Recommended For You

Leave a Reply

Your email address will not be published. Required fields are marked *

Social Media Auto Publish Powered By : XYZScripts.com