Bearish Sentiment Drives Futures Market to 6-Hour Low of $112,000

Bearish sentiment has intensified in the futures market, with traders rapidly closing long positions and amplifying short exposure. Since July 31, the market has seen a significant price drop, bringing prices to a local low of $112,000. Over a 6-hour period, the Net Taker Volume—a metric that reflects the dominance of buyers or sellers—plunged to –$175 million, signaling an aggressive wave of selling. This level marked one of the most extreme bearish movements in recent trading history [1].

Despite a slight stabilization in the following period, the net imbalance remained at –$78 million, suggesting that while selling pressure had somewhat eased, the overall market tone remained firmly bearish. Traders continued to close long positions, and open interest in futures contracts rose to $3.04 billion as market participants built up bearish positions. This increase in open interest indicates a continued belief in further price declines, with sellers actively accumulating positions amid the prevailing sentiment [1].

The bearish trend is not limited to a single asset class. In the cryptocurrency space, Bitcoin derivatives showed a short bias of 52.04% on major exchanges, reflecting traders’ expectations of downward pressure. Similarly, crude oil prices struggled as elevated inventories and weak demand offset potential support from OPEC+ policies. Brent crude failed to break past the $72 level, with speculative long positions at multi-week highs contributing to a neutral-to-bearish technical outlook [3].

The broader risk-off environment has also impacted other markets. Hyperliquid, a derivatives platform, has seen persistent outflows and a negative funding rate, further reinforcing the bearish narrative. In equities, while recent tech earnings initially generated optimism, analysts caution that the market is stretched without showing clear signs of a bubble. Gold positioning data also highlights a bearish stance, with short positioning indicating pessimism over the precious metal’s near-term direction [6].

These developments point to a broader shift in risk appetite, with traders across multiple asset classes positioning for downside risks. While short-term optimism driven by earnings or temporary stabilizations may provide some support, the technical and fundamental indicators remain skewed toward bearishness. As markets reassess liquidity and balance sheet conditions, the trend of unwinding long positions and expanding short exposure is expected to continue in the near term [7].