Despite a significant price retracement to $114,013 that triggered over $200 million in leveraged positions liquidations, data indicates the ongoing Bitcoin bull market remains structurally sound.
The backdrop shows caution rather than bearish conviction in derivatives markets. The BTC options market records a modest put-call delta skew of 5%, reflecting a heightened interest in downside protection near the $114,000 level rather than anticipation of a severe downturn.
Spot Bitcoin Exchange-Traded Funds (ETFs) recorded $115 million in net outflows, marking an end to a prior streak of net inflows. Despite this single session outflow, institutional demand fundamentals are assessed as remaining robust.
Bitcoin’s correlation with the S&P 500 index has notably increased, currently exceeding 70% over a 40-day period. This heightened correlation suggests Bitcoin is currently trading more in line with high-risk technology stocks, rather than exhibiting characteristics as a traditional safe-haven asset.
Supporting the outlook for market stability, MicroStrategy announced plans to raise $4.2 billion via a stock offering. This capital raise aims to fund further Bitcoin acquisitions and potentially reduce operational Bitcoin sales, contributing to reduced market pressure and bolstering the bull market’s continuity.