{"id":383832,"date":"2021-12-21T02:30:00","date_gmt":"2021-12-20T23:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/crypto-regulation-is-coming-but-bitcoin-traders-are-still-buying-the-dip\/"},"modified":"2021-12-21T02:30:00","modified_gmt":"2021-12-20T23:30:00","slug":"crypto-regulation-is-coming-but-bitcoin-traders-are-still-buying-the-dip","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/crypto-regulation-is-coming-but-bitcoin-traders-are-still-buying-the-dip\/","title":{"rendered":"# Crypto regulation is coming, but Bitcoin traders are still buying the dip"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a4266f34d73a\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a4266f34d73a\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/crypto-regulation-is-coming-but-bitcoin-traders-are-still-buying-the-dip\/#Traders_are_still_afraid_of_stablecoin_regulation\" >Traders are still afraid of stablecoin regulation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/crypto-regulation-is-coming-but-bitcoin-traders-are-still-buying-the-dip\/#Top_traders_are_increasing_their_bullish_bets\" >Top traders are increasing their bullish bets<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Crypto regulation is coming, but Bitcoin traders are still buying the dip <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Looking at the Bitcoin chart from a weekly or daily perspective presents a bearish outlook and it&#8217;s clear that (BTC) price has been consistently making lower lows since hitting an all-time high at $69,000.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-12\/8cce0a82-b317-4ab6-8f29-c2f2a5af279c.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin\/USD on FTX. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>Curiously, the Nov. 10 price peak h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ened right as the United States announced that inflation has hit a 30-year high, but, the mood quickly reversed after fears related to China-based real estate developer Evergrande defaulting on its loans. This appears to have impacted the broader market structure. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Traders_are_still_afraid_of_stablecoin_regulation\"><\/span>Traders are still afraid of stablecoin regulation <span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>This initial corrective phase was quickly followed by relentless pressure from regulators and policy makers on stablecoin issuers. First came VanEck&#8217;s spot Bitcoin ETF rejection by the U.S. Securities and Exchange Commission on Nov. 12. The denial was directly related to the view that Tether\u2019s (USDT) stablecoin was not solvent and concerns over Bitcoin&#8217;s price manipulation.<\/p>\n<p>On Dec. 14, the U.S. Banking, Housing and Urban Affairs Committee held a hearing on stablecoins focused on consumer protection and their risks and on Dec. 17, the U.S. Financial Stability Oversight Council (FSOC) voiced its concern over stablecoin adoption and other digital assets. &#8220;The Council recommends that state and federal regulators review available regulations and tools that could be applied to digital assets,&#8221; said the report.<\/p>\n<p>The worsening mood from investors was reflected in the CME&#8217;s Bitcoin futures contracts premium. The metric measures the difference between longer-term futures contracts to the current spot price in regular markets. <\/p>\n<p>Whenever this indicator fades or turns negative, this is an alarming red flag. This situation is also known as backwardation and indicates that bearish sentiment is present.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-12\/1e688fd1-ad11-4cd4-8e15-a67ba1421f0b.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin CME 2-month forward contract premium versus Coinbase\/USD. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>These fixed-month contracts usually trade at a slight premium, indicating that sellers are requesting more money to withhold settlement for longer. Futures should trade at a 0.5% to 2% annualized premium in healthy markets, a situation known as contango.<\/p>\n<p>Notice how the indicator moved below the \u201cneutral\u201d range after Dec. 9 as Bitcoin traded below $49,000. This shows that institutional traders are displaying a lack of confidence, although it is not yet a bearish structure.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Top_traders_are_increasing_their_bullish_bets\"><\/span>Top traders are increasing their bullish bets<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Exchange-provided data highlights traders&#8217; long-to-short net positioning. By analyzing every client&#8217;s position on the spot, perpetual and futures contracts, one can better understand whether professional traders are leaning bullish or bearish.<\/p>\n<p>There are occasional discrepancies in the methodologies between different exchanges, so viewers should monitor changes instead of absolute figures.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-12\/96513144-acc3-426f-bb94-1f1d2a06a4b4.png\"><figcaption style=\"text-align: center;\"><em>Exchanges top traders Bitcoin long-to-short ratio. Source: Coinglass.com<\/em><\/figcaption><\/figure>\n<p>Despite Bitcoin&#8217;s 19% correction since Dec. 3, top traders at Binance, Huobi, and OKEx have increased their leverage longs. To be more precise, Binance was the only exchange facing a modest reduction in the top traders&#8217; long-to-short ratio. The figure moved from 1.09 to 1.03. However, this impact was more than compensated by OKEx traders increasing their bullish bets from 1.51 to 2.91 in two weeks.<\/p>\n<p><strong>Related: <\/strong><strong><em>SEC commissioner Elad Roisman will leave by end of January<\/em><\/strong><\/p>\n<p>The lack of a premium in CME 2-month future contracts should not be considered a &#8216;red alert&#8217; because Bitcoin is currently testing the $46,000 resistance, its lowest daily close since Oct. 1. Furthermore, top traders at derivatives exchanges have increased their longs despite the price drop.<\/p>\n<p>Regulatory pressure probably won\u2019t lift up in the short term, but at the same time, there&#8217;s not much that the U.S. government can do to suppress stablecoin issuance and transactions. These companies can move outside of the U.S. and operate using dollar-denominated bonds and assets instead of cash. For this reason, currently, there is hardly a sense of panic present in the market and from data shows, pro traders are buying the dip.<\/p>\n<p><em>The views and opinions expressed here are solely those of the <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/noshitcoins\"><em>author<\/em><\/a><em> and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.<\/em><\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/crypto-regulation-is-coming-but-bitcoin-traders-are-still-buying-the-dip\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Crypto regulation is coming, but Bitcoin traders are still buying the dip &#8221; Looking at the Bitcoin chart from a weekly or daily perspective presents a bearish outlook and it&#8217;s clear that (BTC) price has been consistently making lower lows since hitting an all-time high at $69,000. Bitcoin\/USD on FTX. Source: TradingView Curiously, the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":383833,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMTIvNTk4MDYyOWEtYTQyZC00MTE1LTkxNjQtNzA0MjM1YzU1MGU0LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,74858,75845,74863,74860,75012,75846,74939,75592,75493,73785,36041],"class_list":["post-383832","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-bitcoin-regulation","tag-cme","tag-cryptocurrencies","tag-cryptocurrency-exchange","tag-derivatives","tag-futures","tag-market-analysis","tag-okex","tag-stablecoin","tag-markets","tag-tether"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/383832","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=383832"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/383832\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/383833"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=383832"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=383832"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=383832"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}