Bitcoin’s recent highs are significantly different from market conditions at the peak of the 2021 bull run. New highs in 2024 In terms of cash ETFs, the difference in inflows compared to the 2021 peak is significant.
The main difference lies in trends in the derivatives market, particularly the increase in clearing activity.
Liquidation risks in the derivatives market have increased in recent years, and asset price volatility has intensified. During periods of severe price volatility, large numbers of contracts are liquidated. As cryptocurrency prices rose, short investors suffered heavy losses and many contracts were liquidated as a result.
The size of the short position has remained stable during the rise, indicating that investors are skeptical about the sustainability of the upward trend and continue to bet on short positions.
This is unlike what happened at the 2021 peak, when long investors were liquidated as Bitcoin prices rose.
In a bull market, investor greed does not dominate the market.
Currently we are waiting for the arrival of the second phase, waiting for ETH to take off and lead the sector to rotate. I believe this moment will come soon!
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