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Nansen analyst: Investors should adopt risk-taking strategies in current market conditions
2024-07-29 04:09
Odaily News Nansen analysts believe that Bitcoin investors should adopt a more risk-on strategy in the current market conditions as technical indicators are bullish across the board. According to the company's weekly research report, the cryptocurrency market is currently bullish and increases the probability of higher risk-adjusted returns for cryptocurrencies in the short term. Analysts insist that investors will not resist the current bullish signals and narratives, including the pricing of the Fed's rate cut, the dominance of US presidential candidate Donald Trump in the polls, the Bitcoin Call-Put spread, and the Bitcoin momentum indicator (above the buy threshold). The Call-Put spread, which measures the difference in implied volatility between Bitcoin call options and put options, is currently hovering between the 10th and 90th percentiles. Implied volatility in the crypto market rose last week and soared to its highest level since May. This trend shows that options traders are becoming bullish and demand for call options is accelerating. In addition, the inflow of funds to spot Bitcoin ETFs is increasing, while on-chain transaction fees led by Ethereum are also growing, which is likely due to the launch of Bitcoin ETFs on July 23, and the market value of stablecoins is also accelerating, indicating an increase in on-chain net inflows. (Crypto Potato)