Bitcoin traders have grown cautious as the price approaches a critical support level of $115,000, following a 7% drop from its peak. Despite the recent decline, there is a lack of panic in the derivatives markets, indicating neutral sentiment among traders. The recent price drop coincided with a monthly derivatives expiry, which eliminated $390 million in futures contracts. Bitcoin futures trading currently reflects a 7% annualized premium over spot markets, suggesting stability in investor sentiment. Although the price peaked at $123,181 on July 14, bullish momentum has not been observed since early February. Additionally, the market's fear level briefly spiked, indicated by a 25% delta skew reaching 10%, but it quickly normalized. Meanwhile, stablecoin demand in China remains steady, with Tether trading at a slight discount, signaling that the recent price action has not significantly impacted demand. Overall, traders are more focused on potential global trade tensions and the Federal Reserve's actions rather than immediate issues within the crypto market, which supports the strength of the $115,000 support level.

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