Bitcoin price continues to show strength even as traders refuse to use leverage for bullish positions. Cointelegraph explains why.
Bitcoin (BTC) gained 21.2% between Feb. 7 and Feb. 15 as traders attempt to establish support at $52,000. This week’s surge is attributed to increased inflows into spot Bitcoin exchange-traded fund (ETF) instruments and macroeconomic uncertainty. However, Bitcoin derivatives metrics do not align with the excessive optimism seen in the market, indicating that professional traders remain unconvinced about the sustainability of the bullish momentum.
The $2.4 billion net inflow into spot Bitcoin ETFs in the past 7 days can be partially attributed to initial signs of a slowdown in the U.S. economy, particularly in the consumer sector. U.S. retail sales declined by 0.8% in January compared to the previous month, according to the Census Bureau. Similarly, Japan and the United Kingdom entered technical recessions after experiencing two consecutive quarters of declining gross domestic product (GDP).
Traders are questioning whether institutional demand for Bitcoin will persist, considering that the latest economic data is unfavorable for risk-on markets. In times of uncertainty, investors often seek protection in fixed-income assets. To gauge the comfort of whales and arbitrage desks with Bitcoin's $52,000 support, one should analyze BTC derivatives markets, starting with the perpetual contract funding rate.
