Bitcoin’s technical metrics show slight improvements since $17,600. But whales and market makers guard against the risk of another disruption. They also continue to state that precautionary measures are needed. After the drop to $17,600 on June 18, a slight sense of hope has emerged among Bitcoin investors. It also realized a bullish pattern in the short term, rising to $21,000.
Recent negative statements from government officials continued to thwart investor optimism. Thomas Muser, vice-president of the Swiss National Bank (SNB), recently made a statement. He said that the decentralized finance (DeFi) ecosystem will cease to exist if the current financial regulations in the crypto industry are implemented. An article published in The People’s Daily on June 26 cited Terra (LUNA), now renamed Terra Classic (LUNC), the collapse of the network, and local Blockchain expert Yifan He mentioned crypto as a ponzi scheme. “All unregulated cryptocurrencies, including Bitcoin, are ponzi schemes based on my understanding,” he explained.
On June 24, Sopnendu Mohanty, chief fintech official of the Monetary Authority of Singapore (MAS), made the statement. According to the statement, he promised to be “brutal and relentlessly tough” against any scams from the cryptocurrency industry. As a result, Bitcoin investors face mixed feelings as they consider $20,000 to be support. Meanwhile, some investors fear the impact of a global recession on risky assets. Therefore, investors continue to analyze derivatives market data to see if they are pricing in the possibility of a higher downturn.
Bitcoin futures are moving in balance!
Retail traders often avoid monthly futures as their prices differ from regular spot markets. Still, this investment vehicle is the preferred instrument of professional investors as they avoid funding rate fluctuation. Fixed monthly contracts are usually traded at a slight premium in the spot markets. Also, investors aim to make money to stop the deal. As a result, futures trade in healthy markets at a premium of 5 percent to 10 percent per year. It should also be noted that this feature is not exclusive to crypto markets.
When this indicator declines or turns negative, it indicates a condition known as a regression. It also comes across as an alarming, bearish red flag. It is noteworthy that the average premium barely touched the negative area as Bitcoin plunged to $17,600. Despite currently holding an extremely low futures premium (basic rate), there is a balanced demand among the market, leverage buyers and sellers.
Some metrics suggest that Bitcoin may have bottomed out on June 18 after miners sold a significant amount of BTC. As we have reported as Kriptokoin.com, this shows that capitulation has already taken place. Adjusting the whales and arbitrage tables can take some time in such cases. Until there is evidence that the risk has been mitigated, Bitcoin will likely continue to trade below $22,000.
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