Crypto Regulations Are Coming, But Bitcoin Traders Still On A Downtrend

Examining the Bitcoin chart from a weekly or daily chart perspective shows negative sentiment, with the price of Bitcoin continuing to rise after hitting its all-time high of $ 69,000. .

BTC/USD (FTX) Source : TradingView

Oddly enough, the highest price came on November 10 when the United States announced that inflation had hit a 30-year high, but sentiment in the economy was quickly reversed by worries about lending. from Chinese developer Evergrande Group. It seems to have affected the business as a whole.

Traders also fear stable financial management.

After this initial overhaul, regulators and policymakers quickly relied heavily on securities. Previously, on November 12, VanEck's Bitcoin ETF was not recognized by the United States Securities and Exchange Commission (SEC). This veto directly addresses the perception that Tether's Stabilitycoin is insolvent and concerns about Bitcoin's price manipulation.

On December 14, the US Treasury Department and the Department of Housing and Urban Services held a hearing on the fixed coin issue, which focused on protecting consumers and their customers from risk. On December 17, the United States Federal Security Agency (FSOC) raised concerns about the adoption of stationary coins and other digital assets. "The Commission recommends that state and federal authorities monitor existing policies and procedures for accessing digital assets," the report said.

This measure measures the difference between the future value of the contract and the current market value in an existing market. When this indicator dims or changes poorly, it is a concerning red flag. This situation is sometimes referred to as expense and indicates a negative attitude.

These regular contracts usually have a lower price, indicating that the seller is asking for more money to defer payment. In the healthcare market, the annual rate of return on a futures market is expected to be between 0.5 and 2%, a condition known as the forward rate.

Note that since December 9, the indicator has fallen below the "average" especially as Bitcoin has fallen below $ 49,000. This has yet to have a downtrend, but it does indicate a lack of investor confidence in the company.

The best traders increase their bets.

The information provided by the stock market describes long and short career trades. By looking at each user position in place, current and future contracts, traders can better understand whether they appear bullish or bearish. Because there are sometimes different procedures for different exchanges, observers should look at the transitions rather than the real numbers.

Bitcoin Long Short ratio of the best traders on the stock exchange Source: Coinglass.com

Bitcoin has seen a 19% correction since December 3, but top traders from Binance, Huobi, and OKEx have rallied their long positions. To be clear, Binance is the only exchange where the best long-term traders fell slightly. This number increased from 1.09 to 1.03. However, this gain was offset in two weeks by an increase in bullish bets from OKEx traders (short-term ratio increased from 1.51 to 2.91).

The lack of value of the upcoming 2 month CME contract should not be viewed as a "red bell" as Bitcoin is currently trying to measure the $ 46,000 level, its lowest daily close since October 1. In addition, despite the drop in prices, the best traders on the stock market have increased their position for the long term.

Regulating governance will not be easy in the short term, but at the same time, the US government has little capacity to restrict the publication and trading of fixed funds. These companies can move outside of the United States and operate on dollar-denominated contracts and non-monetary assets. As a result, there is little fear in the market at this time, and the data shows that market professionals are buying in the bearish market.