Hedge Funds and Institutional Investors Remain Bullish on Bitcoin
US hedge funds and institutional investors are reportedly maintaining a positive outlook on Bitcoin (BTC) despite a recent significant selloff in the cryptocurrency market. According to a report by Bloomberg, Yevgeniy Feldman, the co-founder of private brokerage firm SwapGlobal, emphasizes that major investors consider the recent price dip as a chance to purchase Bitcoin at a discounted rate.
Feldman explains, "People experienced severe losses on long positions, which was quite alarming. However, US hedge funds and institutional participants, who trade options via over-the-counter (OTC) desks, resumed placing bullish options bets by acquiring call spreads on Solana and Bitcoin on Monday and Tuesday." These actions indicate that the Bitcoin bid-to-offer ratio on the US-based crypto exchange Coinbase shows a significant preference for buying the leading digital asset compared to selling it. "Such imbalances suggest that there are numerous buyers poised to purchase at $49,000 and below."
Offshore Exchanges Signal Mixed Sentiments
While traders on offshore exchanges are leaning towards buying more put options than calls, hinting at a potential increase in bearish sentiment, Ravi Doshi, the head of markets at crypto prime brokerage FalconX, maintains a positive long-term view on Bitcoin. The report states, "Despite a strong preference for puts in the short term, the outlook post the US presidential election remains optimistic for calls. Traders anticipate a bullish second half of the year for Bitcoin."
Bitcoin currently trades at $54,984, experiencing a modest 2.1% decline over the past 24 hours, yet the cryptocurrency markets continue to reflect strong interest from institutional players, suggesting a resilient bullish trend.
