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Despite the decline, retail investors have remained active, reported Robbie Liu of OKEx. The investment analyst indicates there has been renewed buying activity near the $50,000 level among retail investors, as demonstrated by the rising long/short ratio and the rising USDT premium on the Asian market.
The investment analyst cited renewed buying activity near the $50,000 level among retail investors, confirmed by the rising long/short ratio and the rising USDT premium in the Asian market. Also highlighted was BTCUSD0326, a large-volume bitcoin futures contract expiring in June, now trading at $56,200, about five percent higher than Bitcoin’s spot price.
Bitcoin climbed by more than 7 percent after testing $50,000-area as its support.
Bitcoin In spite of the ongoing derisking sentiment among institutional investors, Bitcoin's retail interest increased.
Investors who had been locked out of the so-called pandemic winners, like bitcoin, began exploring in the shadow markets that experienced major losses during the coronavirus lockdown. Manufacturers, banks, and retail stocks outperformed technology shares. Prices tend to follow futures’ bids.
“Last Friday, the premium of BTCUSD0625 jumped to 8% before quickly retracing,” alerted Mr. Liu. “The premium is now back to 5% levels, indicating weak market expectations regarding the end of June price. However, since the expiration date is still far off, any increase in price could quickly drive up the premium.”
The retail interest in Bitcoin climbed with the ongoing de-risking sentiment among institutional investors. Signs of a resurgent US economy, rising bond yields, and nascent inflation prompted investors to rotate out of the so-called pandemic winners, including bitcoin, and seek opportunity in markets that suffered majorly during the coronavirus lockdown.
As a result, manufacturers, banks, and retail sectors outperformed tech stocks. Liu pointed out that the margin lending ratio has also been rising on its own counter-trend during the BTC retracement, rising from around 8.5 to a high of 10.5 in the past two days.
The price floor near 50,000 USDT indicates retail investors believe the price will remain at that level in the future.” Photo by Andre Francois McKenzie on Unsplash Tags: bitcoinbitcoin pricebtcusdInstitutions all seem to de-risk, whereas retail investors have recently been trying to catch the bottom. Despite falling Bitcoin prices from $60,000 to $50,000 this week, not all interested retail investors went away, according to Robert Liu of OKEx.Its growth in the long/short ratio and the USDT premium in the Asian market is evidence of this.
“The current event-driven week is ending on a weak note with all the selling pressure stepping in after the Tesla announcement. However, with the massive options expiry out of the way, we could see BTC move more independently over the weekend,” he added.
Margin Lending Ratio
More support for the $50,000-bottom theory appeared from Bitcoin’s margin lending ratio. It’s now back to 5% levels, indicating weak market sentiment regarding the price for the month of June. Even though the expiration date is still far off, any price increase could quickly drive up the premium.
“The margin lending ratio has also seen a counter-trend rise during the BTC retracement, rising from around 8.5 to a high of 10.5 in the past two days,” said Mr. Liu.
“Investors shifted their focus off of the so-called pandemic winners, including bitcoin and sought opportunity in sectors that suffered heavily during the coronavirus lockdown . Therefore, manufacturers, banks, and retail outperformed tech stocks.
Photo by Andre Francois McKenzie on Unsplash
