Bitcoin News Today: Bitcoin Price Drop Sparks 2025 Bull Market Doubts Amid Mixed Derivatives Signals

Bitcoin’s recent price drop has sparked uncertainty among traders regarding the strength of the anticipated 2025 bull market, although derivatives data indicates the broader upward trajectory remains intact. On July 31, Bitcoin fell below $115,000, triggering over $200 million in liquidations of leveraged long positions and prompting investors to reassess their exposure [1]. The price action has led to growing speculation about whether the bull case for 2025 is in danger, particularly as the cryptocurrency remains 7% below its all-time high of $123,182 set in mid-July [2].

Key indicators in the derivatives market reveal a mixed but not overly bearish sentiment. Two-month futures premiums have dipped to 6%, the lowest in four weeks, signaling weaker demand for leveraged bullish positions despite continued institutional buying [1]. Additionally, Bitcoin’s 40-day correlation with the S&P 500 has risen above 70%, suggesting it is behaving more like a high-risk tech stock rather than the "digital gold" many had expected during the escalation of global trade tensions [2]. This shift aligns with broader market movements, including rising demand for U.S. short-term Treasury securities as investors seek safer assets amid revised job market data [3].

Options markets further highlight cautious sentiment. The 25% delta skew between put and call options has edged closer to bearish territory, with the current 5% skew indicating reduced confidence in the $114,000 support level [1]. On the same day, spot Bitcoin ETFs recorded net outflows of $115 million, ending a five-day inflow streak and adding to the sense of caution among retail and institutional investors.

Despite these developments, the broader market has not yet signaled a reversal of the long-term bull narrative. No significant spikes in funding rates or collapses in open interest have emerged, suggesting that the 2025 bull run is not in imminent danger [1]. Moreover, some analysts remain optimistic, noting that August is historically a slower month for Bitcoin outside of post-halving years [2]. Market observers also highlight that numerous analysts continue to forecast a bullish phase extending into October, reinforcing the view that this dip may be a temporary correction rather than a definitive trend reversal.

Source: [1] BTCUSD - Bitcoin price dip shakes trader confidence - ADVFN (https://mx.advfn.com/bolsa-de-valores/COIN/BTCUSD/crypto-news/96547513/bitcoin-price-dip-shakes-trader-confidence-is-the)

[2] IncogniFi Price: INFI Live Price Chart, Market Cap & News ... (https://www.coingecko.com/en/coins/incognifi)

[3] r/Stocks Daily Discussion & Fundamentals Friday Aug 01, ... (https://www.reddit.com/r/stocks/comments/1merxze/rstocks_daily_discussion_fundamentals_friday_aug/)