On October 21, Bitcoin's price fell below $67,000, retracting gains from the previous three days. Analysts attribute this decline to investors reducing their Bitcoin holdings amid concerns of contagion from the traditional markets. Yet, metrics related to Bitcoin derivatives remained stable, suggesting that trader confidence is hanging on. The Bitcoin futures premium showed minimal impact on the price drop, maintaining an annualized premium above 9%, indicating bullish sentiment. Furthermore, the correlation between Bitcoin and the S&P 500 has remained high, above 80%, reflecting that both markets are moving in sync, primarily driven by macroeconomic factors. Also notable is the ongoing stable demand for Bitcoin derivatives. For instance, the options market exhibited a neutral to bullish sentiment, with the put-call skew not reflecting panic among traders. This overall resilience in Bitcoin derivatives indicates that while price volatility persists, market participants are not expecting further significant declines.

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