Bitcoin options worth $1.12 billion are set to expire today with a put/call ratio of 1.17, suggesting a dominating bearish outlook. After a 20% rally in the last two weeks from the lows of $53,500, Bitcoin seems to be taking a breather. The cryptocurrency faced another partial retracement, dropping by 1% in the last 24 hours and moving closer to $64,000. On-chain data indicates that Binance traders are opening fresh short positions for Bitcoin.
Bitcoin Short Positions Building Up
On-chain data provider Santiment noted a significant drop in positive commentary surrounding Bitcoin despite a mid-sized bounce in the market this week. According to Santiment, there’s been a 66% drop in Bitcoin-positive comments compared to four months ago. This decline in sentiment has led many Binance traders to open new short positions, anticipating another BTC price correction. However, Santiment suggests that these bearish factors could actually increase the likelihood of a BTC price surge. The counterintuitive nature of market sentiment often influences price movements, hinting at a potential upswing for Bitcoin soon.
BTC Miners Offload Holdings
The recent price rally has provided BTC miners with an opportunity to offload some of their holdings. As Bitcoin’s price rallied past $60,000, miners reportedly offloaded nearly 2,000 BTC. This activity indicates that miners are taking advantage of the price increase to secure profits.
Decline in Retail Investor Demand
CryptoQuant CEO Ki Young Ju highlighted a significant decline in Bitcoin retail investor demand, which has reached a three-year low. This metric is measured by the 30-day change in total transfer volume for transactions under $10,000. Despite the decline in retail investor demand, institutional players have been active throughout 2024, leading to substantial weekly inflows via OTC desks.
Institutional Inflows and ETF Trends
While retail investor demand has waned, inflows into spot BTC ETFs have continued, with BlackRock’s IBIT leading the trend. On Thursday, July 18, total inflows into US Bitcoin ETFs stood at $84 million, with IBIT alone seeing over $100 million in inflows. In the last ten trading sessions, BlackRock’s IBIT registered over $1.1 billion in inflows. So far, IBIT has amassed over 325,000 BTC in just six months since its launch.
Bitcoin’s future remains uncertain as traders and investors closely monitor market movements and sentiment. While short positions are building up, the potential for a price surge remains, driven by the unpredictable nature of market behavior.
