Recently, the Korean premium indicator has turned negative, suggesting that Korean investors are becoming less interested in the crypto market. This is due to the fact that Bitcoin has been trading sideways for six months since its peak in March of this year, and as macroeconomic uncertainties have increased, Korean investors have experienced investment fatigue and have either left the market or taken a wait-and-see approach. This indicator is also useful for understanding the market sentiment of retail investors.
On the other hand, the Coinbase Premium indicator, which captures the sentiment of US investors, has recently turned positive, and spot ETFs have continued to see net inflows, which is positive for the market. This indicates that smart money is gaining investment confidence following the announcement of market-friendly policies such as interest rate cuts in the US and economic stimulus programs in China amidst uncertain macroeconomic conditions.
To summarize, retail investors are becoming less interested in the crypto market, while macroeconomic uncertainty is easing and US smart money is regaining confidence. The departure of retail investors and the decrease in premiums can be used as a great opportunity to buy up coins.
Written by MAC_D
