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The futures market, which serves as a benchmark for spot trading, is dominated by the positive. In the coming months, not only institutional but also retail traders expect the upward dynamics to continue.
An important event of the past week was the refusal of the US Securities and Exchange Commission (SEC) to issue permission to launch a bitcoin-ETF spot crypto fund. The corresponding application – back in December last year – was submitted by VanEck. What is the reason? How did BTC react to the decision of the American regulator? More about this in our digest.
Meanwhile, against the backdrop of the growing influence of the cryptosphere, the number of people who want to receive a salary in digital currencies has increased. Moreover, the lion’s share of respondents who are ready to use this service were born in the period from 1980 to 2012. In other words, millennials and buzzers are again ahead of the rest.
Last week, Bitcoin set a new record, climbing to $ 69,000. According to OKEx Insights, BTC still has chances for an aggressive scenario as long as it trades above $ 58,000. $ 64,720. Bitcoin capitalization is $ 1.221 trillion.
However, the heat has weakened a little, the researchers emphasize. According to them, next spring, Bitcoin will hit the bar at $ 68,387 (this price is indicated in futures contracts with a date of execution on March 31). But the decline in contract premiums indicates that the likelihood of a breakthrough has decreased slightly.
At the same time, traders practically exclude a large-scale correction of BTC. The strike price for futures as of December 31, 2021 is quoted in the region of $ 66,350. This suggests that investors are hoping for a more successful completion of the current distance.
Last week, the ratio of long and short positions in the futures market remained above one – and this is an indicator of the optimistic mood of all players, including institutional and retail investors. Now this ratio remains in a healthy range – from 1 to 1.5 points. Analysts note that in May it reached almost 2 points.
Long / Short Ratio compares the total number of users opening longs to those opening shorts.
In the derivatives market, an open long position is offset by a short position. The total number of longs must be equal to the number of shorts. A low value of the ratio indicates the transition of most traders to a short-term play in anticipation of a fall in the asset.
Do not retreat and do not give up
On Tuesday, November 16, VanEck Bitcoin futures ETFs will start trading on the Chicago CBOE. The product is launched under the ticker XBTF, and the corresponding announcement is posted on the official website of the trading platform.
Thus, another Bitcoin futures ETF will appear on the market. At the same time, the US Securities and Exchange Commission had previously refused to grant an application for launching a bitcoin-ETF spot crypto fund, the issuer of which VanEck was eager to be.
The regulator refused, as he was not convinced by the arguments set out in the application. The SEC still fears that the emergence of a spot ETF will pose threats to the market and encourage manipulation and fraud.
Recall that in October, the Securities and Exchange Commission gave the go-ahead for the launch of an ETF crypto fund for Bitcoin futures from ProShares and Valkyrie Investments. The first product hit the New York Stock Exchange and the second hit the market on the Nasdaq. VanEck’s futures ETF was approved at the end of October, but the company did not rush to place it.
There are no official comments from top management yet. And experts suggest that interest in the new VanEck product will be weaker than in similar proposals of competitors who managed to bring them to the exchange last month. It sounds logical, since the market is already saturated, and most of those wishing to invest in such assets have already done so.
Young people want a salary in bitcoin
Representatives of generations born after 1980 are ready to receive part of their salary in cryptocurrency. This is evidenced by the results of a survey conducted by the deVere Group.
51% of millennials (people born between 1980 and 1996) said they needed a portion of their income in both Bitcoin and other virtual coins.
The younger generation of respondents (zoomers born after 1996) are even more determined: they agree to receive more than 50% of their wages in digital assets.
The founder and CEO of deVere Group, Nigel Green, emphasized that young people see cryptocurrencies not only as a financial instrument, but also as a technological innovation.
In addition, they are attracted by the decentralized nature of Bitcoin. No state is yet able to control BTC – unlike traditional payment systems. And this gives a person financial freedom.
“Young people believe that cryptocurrency is the future of money,” Green said.
At the same time, 47% of millennials have already invested up to 25% of their savings in digital assets. In addition to bitcoin respondents purchase ether, Bitcoin Cash and Dogecoin… 76% of millennials admitted that they are already making a profit from investing in cryptocurrencies.
Sources: CoinMarketCap, Twitter, Crypto Potato, OKEx insights, Coin Desk
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