Bitcoin's Price Surge Fails to Boost Trader Confidence

Bitcoin's price has been on an upward trend, reaching over $68,000 in recent days. However, despite this increase, data from derivatives markets suggests that traders are still bearish on the cryptocurrency.

The annualized premium of Bitcoin's monthly futures contracts relative to spot markets remains at 2%, indicating a lack of demand for bullish leverage. This is unusual, as traders typically demand a premium to compensate for the longer settlement period. Even after reaching $71,000, investors did not feel bullish enough to drive up demand for leveraged trades.

One possible explanation for this bearish sentiment is that traders are expecting economic stimulus packages in response to emerging recession risks. These packages often support the stock market more than Bitcoin, which may be why traders view it as a risky asset rather than a haven.