US hedge funds and institutional investors reportedly remain bullish on Bitcoin (BTC) despite a massive selloff in the crypto market this week.
According to a new report by Bloomberg, Yevgeniy Feldman, the co-founder of private brokerage firm SwapGlobal, says that blue-chip investors saw an opportunity to buy crypto at lower prices as Bitcoin fell by as much as 17% earlier this week.
Says Feldman,
“People got extremely liquidated on longs, it was horrific. But the US hedge-fund and institutional participants that trade options via OTC (over-the-counter) desks on Monday and Tuesday restarted making bullish options bets by buying call spreads on Solana and Bitcoin.”
Feldman says that the Bitcoin’s bid-to-offer ratio on US-based crypto exchange Coinbase shows that commitments to buy the leading digital asset far exceeds those that seek to sell.
“Such imbalances indicate that there is a tremendous amount of waiting buyers at $49,000 and below.”
Although traders on offshore exchanges are buying more put options than calls, which could be a signal of a rising bearish sentiment, Ravi Doshi, the head of markets at crypto prime brokerage FalconX says that the long-term outlook for Bitcoin remains bullish, according to the report.
“While skews heavily favor puts in the front of the curve, post (the US presidential) election skews remain to the call even after the precipitous sell off. As has been the case for most of the year, traders continue to expect a bullish back half of the year in Bitcoin.”
Bitcoin is trading for $54,984 at time of writing, a 2.1% decrease during the last 24 hours.
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