Market situation: The feeling of distrust in the bitcoin market increases with each passing day



As the situation on the bitcoin futures market shows, professional traders have not had much confidence in this upward trend in recent days and this situation continues today. At the same time, reversing the mood of traders from ascending to descending also reduced the acceptance of market coins.

According to Kevin Desk, the performance of digital currency prices fluctuated from currency to currency yesterday, while from the middle of last week the pressure on market sales seems to be increasing.

Bitcoin fell on Friday after the price temporarily crossed the resistance of 44,000 dollars. As bitcoin prices fell, NEAR jumped 20 percent, while WAVES and Ripple fell 10 percent and 3 percent, respectively.

The slowdown in digital currencies in recent days shows a return to investor distrust, and the effect of this change in sentiment can be clearly seen in the 8% decline in bitcoin over the past seven days. In addition, with the recovery of investor sentiment from ascending to descending, attention to market sanctions has become less than before.

The S & P500 stock index was almost unchanged yesterday as the price of the dollar and gold rose on world markets. The return on investment in US government bonds reached a three-year high of 2.7% with a 10-year maturity. One of the main reasons for this is less investment by market participants in this form of securities. The decline in investor interest in US government bonds is largely due to rising inflation in recent months and the central bank’s decision to raise bank interest rates in the coming months.

Professional traders are also not optimistic

The situation on the bitcoin futures market seems calm, which shows that the 30% jump in the price of bitcoin from the bottom of $ 33,000 on January 24 (February 4) is the work of spot traders.

The chart below shows the total number of open futures on bitcoin on the Chicago Board of Trade (CME), which has decreased over the past seven days. Open contracts are those positions for trading in derivatives that have not yet been settled. It is worth mentioning that this index is used as a tool to measure the inflow and outflow of money in future markets.

Bitcoin futures activity declined after a peak in November last year. The index peaked at this time, before the price of bitcoin fell by 50 percent, and current levels are still higher than between May and September (May and September) last year, indicating that activity was more higher in recent months than at that time.

Market situation: The feeling of distrust in the bitcoin market increases with each passing day
Chart of the total number of open bitcoin futures on the Chicago Board of Trade.

Analysts say leverage has also declined among bitcoin futures traders, indicating that the jump in prices a few days ago was not very safe for investors.

The quarterly annual rate of return, which measures the difference between the price of bitcoin in futures and instant markets, has been declining over the past 14 days in major digital currency exchanges. This is another sign of traders’ distrust of the price of bitcoin.

Market situation: The feeling of distrust in the bitcoin market increases with each passing day
Annual rate of return on the base rate on a quarterly basis.

The publication Market Situation: The feeling of distrust in the bitcoin market is growing day by day, appeared for the first time in digital currency.

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