Bitcoin Futures Sentiment Cools to Neutral Just as BTC Nears All-Time High—What’s Next?

Bitcoin's futures market just lost its bullish spark—right as spot prices tease record highs. The Power Index flips neutral, signaling traders are tapping the brakes despite BTC's rally. Here's why the smart money might be hedging.

The calm before the storm?

Futures open interest stagnates while funding rates normalize—classic signs of equilibrium before volatility strikes. Retail FOMO hasn't kicked in yet, but Wall Street's algos are already licking their chops.

Institutional déjà vu

Remember 2021's 'neutral' readings before 30% plunges? This time, macro risks loom larger: inflation data, ETF flows, and that pesky 10% correction nobody wants to call. Yet BTC keeps grinding up like a Swiss watch—if Swiss watches ran on degenerate leverage.

Pro tip: When futures traders get cautious while spot hits ATHs, either we're at peak complacency... or the rocket's just loading fuel. Place your bets—the house always wins either way.

In August 2025, the Bitcoin futures Power index fell to zero after a period of positive readings that aligned with BTC’s price growth. This neutral level signals a slowdown in futures market momentum, influenced by open interest, funding rates, and order imbalances. With Bitcoin trading near its all-time high, the index’s neutral stance raises the likelihood of a drop into negative territory, which historically precedes market corrections. This shift highlights cautious sentiment in the Bitcoin futures space despite record price levels.