Bitcoin reclaims $90,000 but traders remain cautious

Bitcoin has moved back above $90,000, yet derivatives and market metrics show muted longer-term demand and most open interest concentrated in front-month contracts.

Bitcoin has returned above $90,000 this week, though the rally shows signs of fragility and traders are cautious. Derivatives markets and trading metrics have not shown clear, sustained optimism despite fresh inflows into Bitcoin exchange-traded funds. Analysts described the price uptick as more of a reprieve than a broad market resurgence. Market signals: - Bitcoin saw strong ETF inflows on Jan. 5, reported as the largest single-day net inflow since Oct. 7 and the 10th-largest notional daily inflow since Jan. 1, 2025. - Much of futures open interest remains clustered in short-term contracts, with 86% of open interest concentrated in the front-month expiry, according to K33 Research. - Spot volumes, volatility and derivatives leverage are near pre-December lows, and funding rates for perpetual contracts have been subdued, signaling limited bullish positioning. - Demand for longer-dated futures on the Chicago Mercantile Exchange remains muted; reporting noted that further price gains could make the basis trade more attractive. Summary: The price move above $90,000 has coincided with ETF inflows but underlying market structure points to cautious, short-term positioning and limited longer-term demand. Undetermined at this time.