crypto analyst Nicholas Mertenflying off the stock markets Bitcoin (BTC) While it may seem like a bull market, he thinks there may be more to it than meets the eye.
Speaking in a new video, Merten looks at a metric from blockchain tracker Glassnode that shows the supply of Bitcoin on crypto exchanges is slowly decreasing.
If we examine it superficially, the declining from crypto exchanges Bitcoin (BTC) Saying that we can think that the supply seems to be on the rise, the analyst emphasized that the metric does not include the futures and options markets. According to the analyst, more and more cryptoassets are being pressured to move up and are heading towards a derivatives market.
“A lot of people look to the steady decline and a few percentage points we’re seeing now throughout 2020 and 2021 as really bullish signs. Intuition or other players buy large amounts of Bitcoin and buy it from exchanges and keep it in cold wallets that they keep for a long time. Real institutional players: hedge funds family funds… They just swallow Bitcoin…
Yes, I am saying that something is not right, but that is not the main reason for the decline.”
Merten, derivatives are real crypto marketsIt says it is absorbing capital from the cryptocurrency market, “steering” the space, and creating overwhelming buying pressure on other digital assets, including Bitcoin.
According to the crypto strategist, the shift of traders from spot markets to derivatives markets may be part of what lies behind the overwhelming performance of the crypto markets.
“This is what really surprises the markets. Because this stock market exit, which everyone says is bullish, attracts Bitcoin to derivatives markets. All new users with bitcoin, or in this case dollars or some kind of value, are going to derivatives platforms. Buyer-side pressure is no longer going to spot exchanges.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.