TL;DR
- Bitcoin rebounded 14% after hitting a low of $60,130, stabilizing near $69,000 in a narrow trading range.
- Leading traders remain cautious, with Binance’s long-to-short ratio reaching a 30-day low.
- Meanwhile, US-listed Bitcoin ETFs drew $516 million in net inflows, signaling continued institutional interest even as top traders avoid bullish positions in derivatives markets.
Bitcoin has recovered sharply this week, briefly surpassing $72,000 following a steep decline to $60,130. While the move may indicate $60,000 acted as a short-term support, major traders are refraining from adding long positions. The market remains in consolidation, balancing short-term volatility with the longer-term outlook for Bitcoin.
Market Makers Reduce Exposure Amid Volatility
Binance data shows the long-to-short ratio among top traders fell from 1.93 to 1.20, hitting a 30-day low. This reflects declining demand for leveraged long positions in margin and futures markets, even as prices rebounded. OKX reports a similar trend, with its long-to-short ratio dropping from 4.3 to 1.7 after $1 billion in forced liquidations of bullish futures. Analysts emphasize that these reductions reflect risk management rather than a loss of confidence in Bitcoin’s fundamentals.
The recent correction follows a 52% retreat from Bitcoin’s $126,220 all-time high in October 2025. Traders are cautious in part due to strong performances in traditional markets, such as the S&P 500 near record levels and gold rising 20% over two months, complicating short-term allocation decisions.
Institutional Demand Remains Strong Despite Skepticism
Despite cautious derivatives positioning, inflows into US-listed Bitcoin ETFs suggest sustained institutional confidence. ETFs recorded $516 million in net inflows since the recent lows, reversing the $2.2 billion outflow seen in early February. Analysts attribute some of the prior pressure to broader cross-asset margin unwinds, particularly in metals like silver, which lost 45% in the first week of February.
Options markets have shown temporary defensive strategies as well. The BTC put-to-call ratio on Deribit spiked to 3.1 before settling at 1.7, reflecting short-term hedging rather than a fundamental shift in sentiment. Experts note that Bitcoin’s core characteristics, including censorship resistance and predictable monetary supply, remain unchanged.
The current market presents a cautious but resilient picture. While top traders are holding back from aggressive long positions, institutional interest and ETF inflows underline continued confidence in Bitcoin’s long-term potential. Traders and investors are watching closely for stability in derivatives and broader markets, which could set the stage for renewed upward momentum once uncertainty eases.
