Bitcoin’s price remains stagnant near $70,000 as geopolitical tensions and high oil prices dampen investor sentiment. The cryptocurrency faces pressure from two days of net outflows from U.S.-listed spot Bitcoin ETFs and a broader market shift toward risk aversion. Derivatives data reveals increased demand for protective put options, signaling trader caution amid macroeconomic uncertainty.
Bitcoin traders are turning cautious as high oil prices and Middle East tensions fuel inflation and stall U.S. interest rate cuts. The $254 million in spot Bitcoin ETF outflows is too small to confirm a bearish flip, yet options markets show heavy hedging.
Bitcoin price stagnated near $70,000 after failing to reclaim the $75,000 level. This decline coincided with two days of net outflows from U.S.-listed Bitcoin spot exchange-traded funds, reversing the prior seven-day trend. The bearish sentiment across global markets is weighing on Bitcoin as the S&P 500 plummeted to its lowest level in six months.
Demand for put Bitcoin options premiums at Deribit was nearly 2.5 times larger than equivalent call instruments on Friday. This indicates increased demand for neutral-to-bearish strategies according to data from Laevitas.ch. The Bitcoin options delta skew stood at 16%, meaning professional traders were not comfortable that the $69,000 level would hold.
Traders are not pleased with Bitcoin’s 17% underperformance relative to the S&P 500 over three months. The recent rally to $75,000 was unable to move the needle in Bitcoin options markets, a strong indicator of caution. Part of the pessimism is attributed to the surge in energy prices, with WTI oil sustaining levels above $94.
The fuel price surge is expected to cause consumers to pull back on spending, according to a new Oxford Economics analysis. Analysts warned that U.S. manufacturers who rely on imports will also be impacted, causing further price increases and potential “outright shortages of some products” according to Yahoo Finance. Traders’ sentiment has been largely driven by worsening macroeconomic conditions and uncertainty caused by the prolonged war.
