As Bitcoin struggles to break the $100,000 barrier recently, some bulls are beginning to express doubt about it.
Chris Newhouse, head of research at Cumberland Labs, stated, "While we see strong institutional buying, particularly as entities like MicroStrategy continue to accumulate Bitcoin, the broader cryptocurrency ecosystem is experiencing diversification of capital flows between institutional and non-institutional participants."
As Bitcoin prices stabilize, interest in other digital assets is rising, such as the second-largest cryptocurrency Ethereum and XRP, which had lagged behind Bitcoin after former President Trump's victory. The former president has become a supporter of cryptocurrency, raising expectations for a more friendly regulatory approach from the U.S. towards this often controversial asset class.
According to data compiled by Bloomberg, the monthly net inflows for U.S. Bitcoin and Ethereum spot ETFs set records in November, amounting to $6.5 billion and $1.1 billion, respectively. Last Friday, the daily subscription volume for Ethereum spot ETFs also reached a historic peak.
Fadi Aboualfa, head of research at Copper Technologies Ltd., stated in a message on Monday, "After six weeks of inflows, we saw a week of sell-off, with derivative traders using ETF demand as a measure of macro direction. Early Bitcoin ETF investors may be eager to rebalance their portfolios as their funds have more than doubled."
Meanwhile, according to data from Coinglass, participants in the crypto options market are starting to increase their bearish protection on Bitcoin, while the leverage of Bitcoin futures remains moderate, staying calm after this digital asset's price broke $99,000.
The head of research at digital asset research firm K33, Vetle Lunde, cited data from The Bitcoin Lab stating, "On-chain data suggests that medium-term investors (those who bought Bitcoin in the $55,000 to $70,000 range) are actively taking profits, and sentiment for profit-taking is especially strong when Bitcoin trading prices exceed $90,000."
Lunde noted that the indicator is an estimate that tracks on-chain movements when Bitcoin was last transferred and categorizes them by price. However, seeing such significant concentration within a price range is rare, indicating that trading is particularly active at the current price range.
During the recent Bitcoin rally, the open interest in Bitcoin options and futures contracts remained low.
Jake Ostrovskis, an over-the-counter trader at Wintermute, stated, "In the past 10 days, the market has paused trading, with Bitcoin prices slightly below $100,000. Volatility has slightly compressed to the 64th percentile, while Ethereum's volatility is significantly above the 81st percentile."
On Monday, an article released by blockchain analytics firm Arkham intensified market tension, stating that approximately $2 billion worth of Bitcoin had been transferred from U.S. government wallets to the Coinbase exchange, consisting of Bitcoin confiscated from the dark web "Silk Road." When traders speculate that a large amount of Bitcoin may enter the market simultaneously, prices often decline.
Article shared from: Jinshi Data
