Bitcoin derivatives signal risk amid price drop

Bitcoin's price has fallen below $70,000, coinciding with a significant rise in open interest to 773,000 BTC and elevated funding rates. This suggests leveraged traders are betting on a price rebound rather than reducing risk. The negative Coinbase Premium Index further indicates a disconnect between this bullish derivatives positioning and weak demand in the spot market. Despite these warning signs in the derivatives market, broader sentiment remains fearful, with outflows continuing from U.S. spot Bitcoin ETFs.