According to a recent report from COINOTAG on February 25th, Kraken’s Derivatives Director, Alexia Theodorou, highlighted a notable trend among crypto traders as they rush to purchase Bitcoin following its dip to a three-month low. Currently priced below $88,000, Bitcoin’s decline coincides with a broader risk-off sentiment on Wall Street, as indicated by Nasdaq futures. The resilience of safe-haven assets like the Japanese Yen against the US Dollar further underscores this cautious market condition.
The recent price drop is also tied to fluctuations in Binance Futures’ open interest, which surged by $1 billion on Monday evening, suggesting that traders are increasing their short positions amid expectations of additional declines. Interestingly, this situation has prompted a wave of opportunistic buying on Kraken, leading to a rise in the perpetual contract’s long/short ratio, which has reached an all-time high of 0.8. This data reflects traders’ optimism, as many appear to be ‘buying the dip’ in anticipation of a potential market recovery.