Bitcoin’s price dropped to $114,013 on Friday, causing over $200 million in liquidations of leveraged bullish positions. The decline has investors losing confidence after three straight weeks of failing to hold prices above $120,000.
However, the current 6% premium for monthly futures is the lowest in four weeks, indicating weaker demand for leveraged bullish positions. This signals reduced confidence despite high institutional demand.
Bitcoin’s correlation with stocks has also increased, trading only 7% below its all-time high from July 14. The shift may be due to investors’ views changing over time, as global events such as US import tariff disputes affect every market.
The BTC options market shows a 5% delta skew between puts and calls, leaning towards bearish sentiment. Investors are showing less confidence above $114,000, with the higher cost of downside protection indicating weaker faith in the support level.
Despite recent outflows from spot Bitcoin ETFs, some positive news includes Strategy’s plan to issue a $4.2 billion stock offering, which could help maintain stability in derivatives markets.
While judging only from derivatives data, there is no sign that the 2025 bull run has been canceled or that traders are overly concerned about the recent price decline. Market analysts expect the bull market to last into October, and August tends to be a historically slow month for Bitcoin.
Source: https://cointelegraph.com/news/bitcoin-btc-price-dip-shakes-trader-confidence-is-the-2025-bull-run-in-jeopardy