Bitcoin sells off, but BTC derivatives data points to $150K by year’s end

Bitcoin experienced a 4.2% correction following its all-time high of $126,219, marking a pullback after a strong weekly gain. Despite concerns of a deeper pullback amid global economic uncertainties, derivatives data suggests positive market sentiment. The annualized premium for Bitcoin 2-month futures is currently at 8%, indicating a healthy demand for long positions. Institutional adoption remains strong with over $3.5 billion in weekly ETF inflows, pushing total assets under management to $195.2 billion, underlining Bitcoin's status as digital gold. Exchange reserves have dropped to a five-year low at 2.38 million BTC, reflecting reduced liquidity in the market. The open interest in Bitcoin futures stands robust at $72 billion despite a slight decrease, indicating consistent institutional interest. Declining exchange balances suggest ongoing accumulation rather than selling pressure, supporting future bullish trends in Bitcoin's price. Market experts anticipate that if Bitcoin maintains levels above $120,000, bullish momentum may persist, potentially leading to challenges towards the $150,000 mark by year’s end.

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