Bitcoin bullish bets now a bargain as 7% weekly loss underlines bearish trend

Market Overview - The crypto market is experiencing volatility, with Bitcoin (BTC) falling 7% last week, marking its largest loss in two months, and dropping below a bullish trendline that had supported its rise from $20,000 to a record $126,000 [1] - Bitcoin's price rebounded to nearly $88,000 from a weekend low of around $86,000, indicating a mild recovery despite the overall bearish sentiment [2] Institutional Activity - There is a noticeable decline in institutional interest in cryptocurrencies, as evidenced by a net outflow of $1.33 billion from U.S. spot ETFs last week, the highest outflow in 11 months [3] - On the following Monday, these ETFs only attracted $6.84 million, further highlighting the weakening appetite for crypto investments [3] Derivative Market Insights - Speculators are currently favoring precious metals over cryptocurrencies, leading to a crowded trade in downside protection through put options, while call options for Bitcoin are trading at lower prices, presenting potential opportunities for bullish investors [4][5] - Matthew Siegel from VanEck notes that the current market conditions offer a discount for upside exposure through Bitcoin call options, suggesting a potential bounce in prices for those with a bullish outlook [5] Broader Economic Context - In traditional markets, gold and silver are trading at all-time highs, while the Dollar Index is at its lowest since September of the previous year, indicating a shift in investor focus [6] - South Korea's Kospi index has risen 20% year-to-date, following a significant 75% increase last year, which historically has correlated with downward movements in Bitcoin prices [7]