Recent data reveals a significant rise in 'paper' Bitcoin (CRYPTO:BTC) derivatives amid a bearish trend in BTC's spot price.

Analyst Willy Woo highlights that while the German government sold 10,000 BTC and Mt. Gox has yet to distribute its remaining holdings, the actual selling pressure from these sources has been limited.

Instead, the surge in paper BTC derivatives, totaling 140,000 BTC recently, appears to have exerted more influence on Bitcoin's recent price decline.

Despite these challenges, signs of accumulation in spot exchange-traded funds (ETFs) suggest a potential bullish development ahead for Bitcoin amid the ongoing market volatility.