Bitcoin (BTC) has struggled to rally above $98,000 from November 25 to December 2, despite achieving a 38% monthly gain. This consolidation below the $100,000 psychological barrier has raised concerns among market participants that it may embolden bearish strategies.
However, derivatives markets suggest resilience, with traders paying a 17% annualized premium for leveraged positions compared to the spot price. This premium reflects healthy bullish demand and indicates sustained confidence in Bitcoin’s continued bull run.
Institutional investors such as MicroStrategy and Marathon Digital have added significant amounts of Bitcoin to their holdings. MicroStrategy increased its total BTC holdings to 402,100 by purchasing 15,400 coins between November 25 and December 1 at an average price of $95,976. Meanwhile, Marathon Digital acquired 6,484 BTC between October 1 and November 30, spending over $600 million at an average price of $95,352 per coin.
Spot ETFs have also recorded net inflows of $3.22 billion since November 18, underscoring robust demand beyond corporate balance sheet additions. Bitcoin options markets reflect optimism from whales and arbitrage desks, with put options trading at an 8% discount compared to call options.
Retail traders play a critical role in maintaining market confidence, despite managing smaller positions than institutional players. The monitoring of perpetual contracts and funding rates provides valuable insights into retail leverage demand, which is currently within the neutral range.
Bitcoin’s inability to breach the $98,000 level should not be seen as a weakness, given the robust state of BTC derivatives markets. Both institutional and retail participants exhibit confidence in Bitcoin’s continued bull run, supported by rising adoption among corporations and nations seeking Bitcoin as a hedge against inflationary fiat currencies.
Source: https://cointelegraph.com/news/bitcoin-price-weakens-but-btc-derivatives-remain-healthy