Bitcoin is on the cusp of a bull market that could run into the end of the year, even with this week's meltdown
According to a Kraken report on Tuesday, Bitcoin appears to have “returned to the bull market” despite this week's selloff. Open interest in futures and other activity indicators have rebounded, but they are well below the April highs, and Reddit data suggests there is room for increased interest. Subscribe here to receive our daily newsletter 10 news before your first call. Bitcoin fell to its lowest level in about a month this week after El Salvador adopted cryptocurrency as legal tender. In a research note on Tuesday, Kraken noted that investor interest increased over the summer, but well below the peak seen earlier this year. while the interest of the retail community is also likely to improve. Bitcoin fell 20% on Monday and Tuesday this week, briefly falling below $ 43,000 at some point for the first time in about a month. h, after El Salvador converted the currency into legal tender, prompting an attempt to “buy rumor, sell news” for profit among traders who staged a massive sell-off. on some exchanges, but that doesn't change the optimistic outlook, according to Pete Humiston, manager of Kraken Intelligence. “While these moves may seem dramatic, they can be a sign of a healthy market. Since many market participants use derivatives to speculate prices, market leverage can reach a point where a self-tuning and reboot is required.This led to a sharp surge in market volatility, much like what we saw yesterday, ”said Humiston Insider. Bitcoin lost about 50% of its value along the way in early summer, but has since recovered. Stabilized through July and August 2019 ”. The signs are often suggestive. Market interest has yet to return to levels seen in April / May when BTC and altcoins set new all-time highs, the report said. Return to the market for the size we saw in April, ”the report said, suggesting there is room for derivatives investors to return to the market. buying institutional investors For example, Bitcoin backs products did not see 8 weeks of contract crypto inflows until last week when they saw the first inflows, “Assuming the market remains in an uptrend, we could see an institutional surge in demand that could push the market to all-highs , ”The report says. Retail investors have also shown less appetite for Bitcoin lately, with Google searches and dropping subreddit registrations that put general interest below its head in the fourth quarter. two, when Bitcoin and Ethereum hit an all-time high, as reported by Kraken.“In the end, it can be argued that although we have seen significant market returns, interest rates have not yet returned to 'manic' levels, and market interest is starting to rise again. The report shows demand as we approach the end of the year Kraken is the fifth largest exchange by volume according to CoinGecko.
