Bitcoin price chases after $35K as BTC derivatives data signals fresh inflow

Therefore, presuming that 50% of the position is controlled by a single entity, thats enough to develop a $695 million long position utilizing 5x utilize on Bitcoin futures.Of course, one will never ever be able to validate or dismiss speculations such as the Venus-BNB adjustment or the “gamma capture” in Bitcoin derivatives. Usually, Bitcoin regular monthly futures trade at a 5% to 10% annualized premium compared to spot markets, showing that sellers require additional money to postpone settlement.Bitcoin 1-month futures premium. More especially, it broke above the 5% neutral limit on Oct. 23, putting an end to a 9-week period controlled by bearish sentiment and low need for leveraged long positions.Related: Matrixport doubles down on $45K Bitcoin year-end predictionTo evaluate whether the break above $34,000 has led to extreme optimism, traders should examine the Bitcoin alternatives markets.

As Bitcoins price rallied by 16.1% in between Oct. 22 and Oct. 24, bearish traders utilizing futures agreements discovered themselves liquidated to the tune of $230 million. The evidence suggests that Bitcoin shorts were taken by surprise on Oct. 22 however they were not utilizing extreme leverage.Bitcoin futures aggregate open interest, USD. At the time, Bitcoins futures open interest decreased from $12 billion to $11.3 billion.Data appears to support the gamma capture theory that is flowing, which suggests that market makers had their stop losses “gone after.

Bitcoin personality NotChaseColeman described on X social media network (formerly Twitter), that arbitrage desks were likely forced to hedge brief positions after Bitcoin broke above $32,000, activating the rally to $35,195. The most significant issue with the short squeeze theory is the boost in BTC futures open interest. This indicates that even if there mattered liquidations, the need for new leveraged positions exceeded the forced closures.Did Changpeng Zhao and BNB play a role in Bitcoins price action?Another intriguing theory from user M4573RCH on X social media claims that Changpeng “CZ” Zhao utilized BNB as security for margin on Venus Protocol, a decentralized finance (DeFi) application after being required to sell Bitcoin to “shore up” the price of BNB token.maybe im nuts however what we simply saw iscz has BNB collateral on Venus bnb dumpingcz sells btc to fortify bnb cz loosens up loans and pays back debt on Venusbnb on venus no longet vulnerable to liquidationcz buys back btc with bnb to rebalance his btc position@cz_binance … pic.twitter.com/NHulDnacB3— ⚡ (@M4573RCH) October 25, 2023

As Bitcoins cost rallied by 16.1% between Oct. 22 and Oct. 24, bearish traders using futures agreements discovered themselves liquidated to the tune of $230 million. Bitcoin character NotChaseColeman discussed on X social network (formerly Twitter), that arbitrage desks were likely forced to hedge brief positions after Bitcoin broke above $32,000, activating the rally to $35,195. Therefore, presuming that 50% of the position is managed by a single entity, thats enough to create a $695 million long position using 5x leverage on Bitcoin futures.Of course, one will never be able to validate or dismiss speculations such as the Venus-BNB adjustment or the “gamma squeeze” in Bitcoin derivatives. Normally, Bitcoin monthly futures trade at a 5% to 10% annualized premium compared to find markets, showing that sellers require additional money to delay settlement.Bitcoin 1-month futures premium. More notably, it broke above the 5% neutral limit on Oct. 23, putting an end to a 9-week period dominated by bearish belief and low need for leveraged long positions.Related: Matrixport doubles down on $45K Bitcoin year-end predictionTo evaluate whether the break above $34,000 has led to extreme optimism, traders must examine the Bitcoin choices markets.