- Bitcoin‘s funding rate climbed to 7%, signaling growing bullish confidence, but persistent spot ETF outflows are delaying a push toward $70,000.
- Strong order-book bids and lower oil prices provided support, yet broad weakness in stocks, bonds, and Gold indicates a market-wide shift toward cash.
- Increased demand for put options and Strategy’s initial valuation concerns highlighted investor caution, though the latter were partially eased by a new cash position.
Bitcoin traded near $65,500 on Monday as optimism grew from positive geopolitical developments and a rising perpetual futures funding rate. However, the rally faces headwinds from sustained outflows in US-listed spot ETFs, data shows.
The Bitcoin perpetual futures annualized funding rate jumped to 7%, its highest in nearly three weeks, reflecting increased confidence among leveraged bulls. This optimism was partly fueled by Brent crude oil prices falling to $77.50, their lowest level since March according to TradingView.
Meanwhile, broader financial markets signaled risk aversion. The Nasdaq 100 declined as AI stocks weakened, and demand for protective put options at Deribit outpaced calls by over two-to-one according to Laevitas. Consequently, a simultaneous sell-off in stocks, bonds, and gold pointed to a clear preference for cash holdings.
Investor concerns briefly focused on Strategy, whose shares traded 13% below its Bitcoin acquisition cost, raising fears of potential reserve sales. Those fears were somewhat alleviated after the company announced a substantial additional cash position.
Bids on major Bitcoin order books exceeded offers by $12 million, reversing the weekend trend as per CoinGlass. However, with spot ETFs seeing $228 million in net outflows the prior week, the immediate path to a $70,000 Bitcoin breakout appears limited.
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