Bitcoin ETF Inflows Rise While Derivatives Markets Reflect Caution

Bitcoin recently retested the $70,000 level, supported by $764 million in net inflows into US-listed ETFs over two days, which helped offset prior outflows, suggesting institutional demand below $65,000. However, the derivatives market remains cautious; the annualized premium for BTC futures is only 2%, well below the 5% neutral threshold, and the 30-day options delta skew shows a 14% premium for put options over call options, indicating fear persists. This cautious stance follows a significant price drop from $85,000 and is linked to broader risk aversion, lingering concerns over institutional liquidations, and perceived Bitcoin network security risks, including discussions around post-quantum cryptography proposals. Various unproven theories about Bitcoin's recent weakness have circulated, involving past market crashes, alleged exchange errors, and the influence of major quantitative trading firms like Jane Street, whose recent ETF holdings are considered typical for delta-neutral strategies.

(Source：Cointelegraph)