Analysis: Derivative trading indicators show that Bitcoin speculation is cooling down
Nov. 15 - The speculative frenzy surrounding bitcoin since Donald Trump won the U.S. presidential election is cooling off in the spot and derivatives markets.
K33 Research says the premium of bitcoin futures listed on the Chicago Mercantile Exchange over the spot market price has fallen. data from Amberdata shows that open positions (i.e., open contracts) on $80,000 strike puts on bitcoin have spiked sharply over a 24-hour period. vetle Lunde, head of research at K33, said. “The market appears to be cooling and the narrowing of futures premiums could be a subtle hint that risk appetite is moderating”.
James Davies, chief executive of Crypto Valley Exchange, an on-chain options and futures trading platform, said, “All trades are now purely speculative, and expect a lot of volatility and a lack of clear signals for some time to come as we await policy announcements from the US. ”
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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