Bitcoin retreated from near $97,900 and stabilised around $95,500 after an 8% three-day rally wiped out roughly $465 million in short futures positions.
Analysts said the rally faltered as funding rates stalled, signalling weak demand for bullish leveraged positions.
Bitcoin’s perpetual futures funding rate hovered near 4%, well below the typical neutral range of 8% to 12%.
Data indicates retail traders remain largely on the sidelines despite the recent price rebound.
Market observers said the pullback from $97,000 further dampened short-term investor sentiment.
Google Trends data showed global search interest for “crypto” near a 12-month low, reflecting subdued retail engagement.
Bitcoin continues to trade around 25% below its all-time high despite gains in equities and commodities.
Analysts noted that retail traders have instead chased short-term outperformers such as silver.
Concerns over geopolitical tensions and the independence of the US Federal Reserve have added to market caution.
Uncertainty has also been fuelled by expectations of policy changes once Federal Reserve Chair Jerome Powell’s term ends.
Institutional investors have resumed buying spot Bitcoin exchange-traded funds, helping offset weak retail demand.
Assets held in Bitcoin ETFs have surpassed $120 billion, highlighting growing institutional exposure.
Public companies following corporate treasury strategies have collectively acquired more than $105 billion worth of Bitcoin.
Analysts said sustained institutional demand could ultimately push Bitcoin back towards the $100,000 level.
At the time of reporting, Bitcoin price was $95,778.59.