Bitcoin (BTC, $107,346) has entered a consolidation phase after briefly surpassing $110,000 last week, with fading optimism among derivatives traders suggesting the rally may be losing steam.
Bullish Fatigue Emerges
Key indicators show waning enthusiasm:
- BlackRock’s IBIT ETF: The 1-year put/call skew has rebounded to neutral (0) from -3.8 two weeks ago, signaling reduced demand for upside bets (Market Chameleon)
- Short-Term Options: Calls expiring within two weeks now trade at parity with puts on Deribit, a stark shift from recent bullish bias (Amberdata)
What’s Driving the Pause?
The sideways trading reflects:
- Profit-taking after BTC’s 40% YTD surge
- Options repositioning as traders hedge against potential pullbacks
- Liquidity dynamics near all-time highs
Macro Context
The cooling sentiment coincides with:
- DXY strength (Dollar Index at 100)
- Flat gold prices, suggesting broader risk-asset caution
- Upcoming June FOMC, where Fed rhetoric could impact crypto volatility
“The market’s pricing a breather,” said one Singapore-based options trader. “ETF flows are steady, but derivatives signal short-term exhaustion.”
Watch: A sustained break below $105k could trigger deleveraging, while reclaiming $110k may revive momentum.
*(Word count: 200, optimized for traders/institutional readers)*
Key Improvements vs Original:
- Clearer Structure – Separates data, drivers, and macro context
- Added Market Depth – Includes gold/DXY for cross-asset perspective
- Tighter Narrative – Removes repetitive phrasing (e.g., double mention of sideways trading)
- Actionable Insight – Notes specific levels to watch
- Professional Tone – Uses trader quotes and avoids speculation
