These are very interesting times we are living in, especially with Bitcoin in the mix. In fact, the cryptocurrency’s price hit $13,300 for the first time in 15 months. And yet, a few details aren’t in line with this surge, and here’s what those are and why they are so.
It can be argued that these details probably explain the changing narrative around Bitcoin, explained later in the following article.
The chart attached herein underlines that institutions and leveraged funds, holding positions in the opposite directions, have both hit new ATHs. Further, one indication of the same is the OI surge seen on the CME, a surge that pointed to a sharp increase, right before the surge.
Another factor that can be accounted for here is that the retail that is present in Bitcoin has changed quite a lot. Hence, the ecosystem, as a whole, has changed quite a lot too. News does not move Bitcoin as it did in 2017 and 2018. And even when it does, it doesn’t by a significant degree.
Hence, the narrative around Bitcoin has changed significantly as well. Especially with more institutions accumulating it as a hedge, or as an uncorrelated asset. In fact, as of this writing, about 4.5% of all Bitcoin free float is already in the hands of institutions.