Bitcoin failed to sustain levels above $85,000 amid S&P 500's rise, leading traders to question the continuation of the bull market.
Bitcoin's Rate Recovery
From a derivatives perspective, Bitcoin shows resilience despite a 30% drop from its all-time high of $109,354. The Bitcoin basis rate has rebounded to healthy levels despite recent bearish signals. Traders typically demand a 5-10% annualized premium for longer settlement periods. While the current 5% rate is lower than the 8% recorded two weeks ago, it remains within neutral territory.
Role of Central Banks in BTC Movement
Bitcoin's price action has closely tracked the S&P 500, challenging its status as a non-correlated asset. Central banks are likely to implement stimulus measures to avoid recession, potentially boosting assets like Bitcoin.
Calm in Bitcoin Derivatives Market
Professional traders are not actively using Bitcoin options for hedging, as shown by the 25% delta skew metric, indicating neutral market expectations. The current situation in margin markets reflects resilience, with long positions outweighing shorts by 18 times.
Given the resilience in derivatives and margin markets, Bitcoin price is likely to reclaim the $90,000 level in the coming weeks, with recession risks easing.
