IBIT Bears Hold Firm as Price Momentum Falters

IBIT, the key metric linked to BlackRock’s Nasdaq-listed spot Bitcoin ETF, has been signaling persistent caution for investors over the past two months.

The one-year put-call skew for IBIT, which measures market sentiment or risk appetite, turned positive on July 25 and has stayed comfortably above zero since, according to Market Chameleon. This indicates that traders have consistently favored protective puts over bullish calls, reflecting a sustained bearish or risk-averse stance.

A similar put-biased sentiment was seen earlier this year, from March 8 to April 21, coinciding with sharp declines in both spot Bitcoin and IBIT amid trade-war pressures affecting Wall Street.

Price Momentum Weakens

IBIT’s price trend has struggled to regain traction since July, repeatedly failing to surpass the $70 mark. Most recently, the ETF formed a lower high at $66, signaling waning buying pressure and growing strength among sellers. Analysts note that this pattern often precedes further downside or a sustained bearish phase.

As investor caution remains entrenched, market watchers will be closely monitoring whether IBIT can break above key resistance levels or if the current bearish momentum will continue to shape trading behavior.