The post Bitcoin’s short positions surge as traders bet on more losses – Why? appeared on BitcoinEthereumNews.com.

Bitcoin’s spot demand drops sharply, making it vulnerable to further downside, with bearish sentiment rising The futures market showed increasing short positions, reinforcing the bearish outlook for Bitcoin amidst global uncertainties Bitcoin [BTC] is facing renewed selling pressure as demand in the spot market shrinks at its fastest rate since July 2024. On-chain data reveals a significant contraction in apparent demand, reducing buy-side liquidity and making the asset more vulnerable to downward price movements. Meanwhile, in the futures market, traders are increasingly opening short positions, reinforcing a bearish outlook. With both spot demand waning and bearish sentiment dominating the derivatives market, Bitcoin’s price has struggled to find support. Spot demand plummets Bitcoin’s spot demand plays a crucial role in maintaining price stability by ensuring consistent buy-side pressure. When spot demand declines, fewer buyers are willing to acquire Bitcoin, increasing the risk of downward price movements. Source: CryptoQuant The chart shows a sharp decline in apparent demand starting in early 2025, reaching its lowest point in nearly a year. This drop resembles the pattern observed in July 2024, when a similar decrease in spot demand aligned with a price correction. Throughout late 2024, positive demand predominantly drove Bitcoin’s rally. However, the recent negative demand reflects a decline in market confidence. If this trend persists, Bitcoin could experience additional downward pressure in the coming weeks. Bearish bets intensify Bitcoin’s downtrend The perpetual futures market plays a crucial role in Bitcoin’s price action, as traders use leverage to speculate on price movements. When long positions dominate, it suggests bullish sentiment, whereas an increase in short positions signals growing bearish pressure. Source: CryptoQuant The data reveals that from the 3rd of March onward, there has been a noticeable increase in open short positions, which aligns with Bitcoin’s price drop from approximately $96K to below…

---

Filed under: News - @ March 10, 2025 10:22 am