A naukri.com initiative
Bitcoinist
2d
262
Image Credit: Bitcoinist
Bitcoin Traders Stay Defensive Near Highs as Ethereum Leverage Climbs
- Bitcoin has recovered to around $110,000 following last week’s decline, with many traders remaining cautious despite trading close to its all-time high.
- Analysts note a prevailing sense of caution among traders, with negative funding rates and flat leverage inflows indicating a lack of bullish conviction.
- The current rally in Bitcoin may be driven by underlying demand rather than speculative trading, with historical patterns suggesting potential for further price gains.
- Binance’s BTC/USDT perpetual contracts showed negative funding rates, indicating a bearish bias even as the price recovers.
- The Volatility Shares 2x leveraged long Bitcoin ETF (BITX) has seen a decrease in BTC exposure, suggesting a defensive stance among traders.
- Traders are refraining from aggressive bullish exposure via leverage in the Bitcoin market, with the defensive setup potentially leading to an unexpected surge if sentiment changes.
- In contrast, Ethereum markets are experiencing increased speculative activity, with the Volatility Shares 2x leveraged Ethereum ETF (ETHU) accumulating significant ETH exposure.
- Since April 8, ETHU has added over 305,000 ETH in exposure, surpassing the increase in CME ETH open interest during the same period.
- ETHU now holds a significant portion of ETH among US spot ETFs and CME’s ETH open interest, indicating a strong demand for leveraged Ethereum exposure.
- The rise in ETHU positions suggests traders are positioning for potential upward movement in Ethereum, potentially driven by policy developments or fundamental catalysts.
Read Full Article
15 Likes
For uninterrupted reading, download the app