9 months ago
50 ARTICLE AD
After reaching a new yearly peak on Feb. 20, Bitcoin corrected 2%, but investors with deep pockets are not comfortable betting against the asset.
The short squeeze ratio in Bitcoin (BTC) contracts is lower this year compared to previous years, as the “Bitfinex Alpha 92” report points out. According to Bitfinex’s analysts, this could be related to ‘whales’ believing in a more substantial rally for BTC, and to a pivot towards direct investments in Bitcoin, bypassing derivative markets.
A short squeeze happens when an asset price rises sharply and forces short investors to buy more and avoid significant losses. The report suggests that this shift in behavior favors direct investment in BTC rather than speculative short selling.
Bitcoin has reached a new peak for the year, touching $52,700 on Feb. 20, marking a 25% increase since January and a 207% rise from its November 2022 lows. This recent surge places Bitcoin almost 29% below its highest-ever value, amidst a backdrop of growing demand and constricted supply.
The crypto’s performance comes in the face of rising inflation, as indicated by recent Consumer Price Index (CPI) and Producer Price Index (PPI) reports, and continued investments into Bitcoin spot Exchange-Traded Funds (ETFs). Analysts note that the market’s resilience may be partially attributed to these factors, challenging earlier market predictions.
Further analysis into Bitcoin’s supply distribution indicates a bullish sentiment among holders. Currently, only 11% of Bitcoin’s total supply is held at a loss, with a mere 6% of long-term holders in deficit. Such distribution patterns historically signal the onset of a bull market phase.
The broader economic landscape, characterized by persistent inflation and reduced consumer spending, has led to adjusted forecasts for potential rate cuts, now postponed to late spring or early summer.
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
