Bitcoin Reclaims $71K, But How Long Will It Hold?
Bitcoin climbed back above $70,000 after recovering some Thursday losses, gaining roughly 17% from a $60,150 low on Friday. The price move has not been matched by broader demand for leverage or by gains in gold and tech stocks. Derivatives activity points to caution.
About $1.8 billion of leveraged bullish futures contracts were liquidated over five days, while aggregate futures open interest stood at 527,850 BTC, essentially flat week‑on‑week. The notional value fell to $35.8 billion from $44.3 billion, a 20% drop that tracked a 21% Bitcoin price decline over the same week.
The BTC futures basis rate eased to 2% on Friday, its lowest level in more than a year, indicating limited demand for bullish leverage even as some bulls added positions between $70,000 and $90,000. In options markets, the BTC 2-month skew surged to 20%, a reading that typically signals panic and heightened fear.