Definition ∞ Short Bitcoin demand refers to the market interest in betting against the price of Bitcoin, expecting its value to decline. This demand is typically expressed through derivative instruments like futures contracts, options, or perpetual swaps, where investors take a “short” position. An increase in short demand indicates a bearish sentiment among a segment of market participants, anticipating a downward price movement. It reflects a collective expectation of future price depreciation.
Context ∞ Analyzing short Bitcoin demand, often measured by funding rates or open interest in short positions, provides crucial insights into market sentiment and potential price reversals. News reports frequently discuss spikes in short demand as indicators of impending price corrections or market weakness. This metric helps gauge the balance between bullish and bearish forces.
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