Despite a recent price drop for Bitcoin to $109,400, the futures market for this cryptocurrency shows high demand.
Price Decline of Bitcoin and Its Causes
Cryptocurrency Bitcoin (BTC) reached a level of $109,400 on Monday, marking its lowest value in over six weeks. This decline occurred following an $11 billion sale executed by a 'whale' that had not traded for five years. The proceeds were rotated into Ether (ETH) spot and futures on the decentralized exchange Hyperliquid.
Rising Demand for Bitcoin Futures
Despite the falling prices, demand for Bitcoin futures reached a record level, with open interest climbing to 762,700 BTC, a 13% increase from two weeks earlier. This indicates that traders continue to actively engage with the market despite the price declines.
Investor Sentiment Observations
The premium on Bitcoin put options is currently at 10% over call options, indicating persistent bearish sentiment among investors. This could be linked to the recent price drop of $6,050 within two days, as well as changes in positions of major market players.
Despite the current price drop, traders' interest in Bitcoin futures remains high. However, the sustainability of this trend will depend on future inflows into spot ETFs and the overall market situation.
