Critical Drop Warning for Bitcoin: Institutional Investors Are Concerned

Recent developments in the Bitcoin (BTC) options market are attracting investors' attention. Nick Forster, the founder of Derive, stated that this situation indicates a short-term bearish expectation. Especially following the massive sell-off that occurred over the weekend in the crypto market, the price of Bitcoin fell below 112,000 dollars.

Forster pointed out that hundreds of millions of dollars flowing out of ETF funds and a weakening risk appetite have significantly suppressed optimism in the markets. In this context, there is a notable high demand for put options at the 115,000 dollars and 95,000 dollars levels in the Bitcoin options market. The selling of call positions at the 125,000 dollars level during the same period indicates that investors are abandoning their bullish expectations. Forster stated that this situation clearly demonstrates that the market is taking on short-term bearish positions and that upward momentum is weakening.

According to Forster, this defensive trend is not only putting pressure on Bitcoin but is also further exacerbated by ETF outflows. In just one day, 755 million dollars flowed out of spot Bitcoin and Ethereum ETFs in the U.S., while perpetual DEX open positions dropped from 26 billion dollars to 14 billion dollars. Meanwhile, the weekly DEX trading volume reaching 177 billion dollars and hitting a record is also noteworthy.

Looking ahead, Forster emphasized that it will be challenging for Bitcoin to gain upward momentum without institutional demand. He pointed out that while open interest in the options market remains high, the trend has turned downward. Forster mentioned that investors should pay attention to short-term spot demand and ETF inflows, as these will determine prices. Considering these developments, it is beneficial for Bitcoin investors to closely monitor market dynamics.