Bitcoin rallies to $71.5K after historic sell-off, but derivatives metrics remain soft

Bitcoin experienced a powerful rebound, surging past the $71,500 mark following a significant mid-week correction that saw the asset briefly dip toward the $65,000 level. This volatility spike successfully flushed out billions in leveraged long positions, leading to what many analysts describe as a necessary market reset. The rapid recovery to $71.5K indicates strong underlying spot demand. However, the accompanying metrics in the derivatives market suggest the rally is not yet supported by aggressive speculative momentum. Key indicators, including Open Interest (OI) and the aggregated Funding Rate, remain subdued. The failure of the Funding Rate to spike aggressively positive signals that leverage traders are hesitant to rapidly redeploy capital to chase the rising spot price. While the price rebound is encouraging, the softness in the derivatives complex implies that the rally may lack the deep speculative backing required for a confirmed push toward new all-time highs, necessitating confirmation via sustained institutional inflows.

Source: Bitcoin rallies to $71.5K after historic sell-off, but derivatives metrics remain soft