Bitcoin is facing growing bearish pressure as derivatives markets reflect heightened investor caution. The asset fell roughly 10% over a two-day period, briefly retesting the $81,000 level for the first time in more than two months. The pullback followed sustained outflows from US-listed spot Bitcoin exchange-traded funds, which have recorded approximately $2.7 billion in net redemptions since mid-January, equivalent to 2.3% of total assets under management.
The decline has raised concerns about the resilience of the $80,000 psychological support zone, particularly as broader risk sentiment weakened alongside a pullback in gold prices from recent highs.
Bitcoin Options Reflect Extreme Fear
Bitcoin options markets are flashing their most bearish signal in over a year. The two-month BTC options delta skew surged to around 17%, far above levels typically seen in neutral conditions. Such readings indicate strong demand for downside protection and suggest traders are positioning for increased volatility.
During the sell-off, nearly $860 million in leveraged long futures positions were liquidated. Despite this, overall futures open interest has trended lower over recent months, pointing to a reduction in excessive leverage rather than panic-driven speculation.
Broader Risk Factors Weigh on Sentiment
Additional uncertainty has emerged from renewed debate around long-term technological risks, including concerns over quantum computing and blockchain security. While some institutions have cited these risks, industry experts continue to view them as distant rather than imminent.
In the near term, Bitcoin’s recovery prospects may depend on stabilizing ETF flows and broader macro conditions, as investors balance risk assets against rising demand for cash and short-term government securities.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.