{"id":557724,"date":"2023-02-28T22:06:14","date_gmt":"2023-02-28T19:06:14","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/derivatives-data-highlights-crypto-traders-positive-sentiment-and-belief-in-further-upside\/"},"modified":"2023-02-28T22:06:14","modified_gmt":"2023-02-28T19:06:14","slug":"derivatives-data-highlights-crypto-traders-positive-sentiment-and-belief-in-further-upside","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/derivatives-data-highlights-crypto-traders-positive-sentiment-and-belief-in-further-upside\/","title":{"rendered":"# Derivatives data highlights crypto traders\u2019 positive sentiment and belief in further upside"},"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-6a3cd19195f56\" 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-6a3cd19195f56\" 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-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/derivatives-data-highlights-crypto-traders-positive-sentiment-and-belief-in-further-upside\/#%E2%80%9D_Derivatives_data_highlights_crypto_traders_positive_sentiment_and_belief_in_further_upside_%E2%80%9C\" >&#8221; Derivatives data highlights crypto traders\u2019 positive sentiment and belief in further upside &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/derivatives-data-highlights-crypto-traders-positive-sentiment-and-belief-in-further-upside\/#Leverage_demand_is_balanced_despite_the_price_correction\" >Leverage demand is balanced despite the price correction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/derivatives-data-highlights-crypto-traders-positive-sentiment-and-belief-in-further-upside\/#The_options_putcall_ratio_remains_optimistic\" >The options put\/call ratio remains optimistic<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Derivatives_data_highlights_crypto_traders_positive_sentiment_and_belief_in_further_upside_%E2%80%9C\"><\/span>&#8221; Derivatives data highlights crypto traders\u2019 positive sentiment and belief in further upside &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-48054ca8>The recent weakness in the crypto market has not invalidated the six-week-long ascending trend, even after a failed test of the channel&#8217;s upper band on Feb. 21. The total crypto market capitalization remains above the psychological $1 trillion mark and, more importantly, cautiously optimistic after a new round of negative remarks from regulators.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/456d48e7-1f18-40e8-8326-cdf33bc28fa6.png\"><figcaption style=\"text-align: center;\"><em>Total crypto market cap in USD, 12-hour. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>As displayed above, the ascending channel initiated in mid-January has room for an additional 3.5% correction down to $1.025 trillion market capitalization while still sustaining the bullish formation.<\/p>\n<p>That is excellent <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> considering the FUD \u2014 fear, uncertainty and doubt \u2014 brought down by regulators regarding the cryptocurrency industry.<\/p>\n<p>Recent examples of bad news are, a United States District Court judge ruling that emojis such as the rocket ship, stock chart and money bags infer &#8220;a financial return on investment,&#8221; according to a recent court filing. On Feb. 22, a federal court judge ruling on a case against D<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>er Labs denied a motion to dismiss the complaint alleging that its NBA Top Shot Moments violated security laws by using such emojis to denote profit.<\/p>\n<p>Outside of the U.S., on Feb. 23, the International Monetary Fund (IMF) issued guidance on how countries should treat crypto assets, strongly advising against giving Bitcoin a legal tender status. The paper stated, &#8220;while the supposed potential benefits from crypto assets have yet to materialize, significant risks have emerged.&#8221; <\/p>\n<p>IMF directors added that &#8220;the widespread adoption of crypto assets could undermine the effectiveness of monetary policy, circumvent capital flow management measures, and exacerbate fiscal risks.&#8221; In short, those policy guidelines created additional FUD that caused investors to rethink their exposure to the cryptocurrency sector.<\/p>\n<p>The 5.5% weekly decline in total market capitalization since Feb. 20 was driven by the 6.3% loss from Bitcoin (BTC) and Ether&#8217;s (ETH) 4.6% price decline. Consequently, the correction in altcoins was even more robust, with 9 out of the top 80 cryptocurrencies down by 15% or more in 7 days.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/79e9aa71-39f4-420f-a406-6c3e8ceda9ca.png\"><figcaption style=\"text-align: center;\"><em>Weekly winners and losers among the top 80 coins. Source: Messari<\/em><\/figcaption><\/figure>\n<p>Stacks (STX) gained 53% after the project announced its <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/stacks.org\/stacks-21-what-to-expect\">v2.1 update<\/a> to strengthen the connection to Bitcoin-native assets and improve its smart contracts&#8217; control.<\/p>\n<p>Optimism (OP) rallied 13% as the protocol released the details of its upcoming <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/optimism.mirror.xyz\/2jk3D1Y8-hid8YOCUUa6yXmsyzNCYYyFJP0Nhaey9x0\">superchain network<\/a>, which focuses on interoperability across blockchains.<\/p>\n<p>Curve (CRV) traded down 21% after an Ethereum security analytics firm suggested verkle trees implementation, which could severely impact Curve Finance&#8217;s use on the mainnet, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CurveFinance\/status\/1629563707301691396\">according<\/a> to its team.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Leverage_demand_is_balanced_despite_the_price_correction\"><\/span>Leverage demand is balanced despite the price correction<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Perpetual contracts, also known as inverse swaps, have an embedded rate that is usually charged every eight hours. Exchanges use this fee to avoid exchange risk imbalances.<\/p>\n<p>A positive funding rate indicates that longs (buyers) demand more leverage. However, the opposite situation occurs when shorts (sellers) require additional leverage, causing the funding rate to turn negative.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/4538d697-0929-4152-ac1c-fb4e5aebd8a5.png\"><figcaption style=\"text-align: center;\"><em>Perpetual futures accumulated 7-day funding rate on Feb. 27. Source: Coinglass<\/em><\/figcaption><\/figure>\n<p>The 7-day funding rate was marginally positive for Bitcoin and Ethereum, thus a balanced demand between leverage longs (buyers) and shorts (sellers). The only exception was the slightly higher demand for betting against BNB price, although it is not significant.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_options_putcall_ratio_remains_optimistic\"><\/span>The options put\/call ratio remains optimistic<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Traders can gauge the market&#8217;s overall sentiment by measuring whether more activity is going through call (buy) options or put (sell) options. <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">General<\/a>ly speaking, call options are used for bullish strategies, whereas put options are for bearish ones.<\/p>\n<p>A 0.70 put-to-call ratio indicates that put options open interest lags the more bullish calls and is therefore positive. In contrast, a 1.40 indicator favors put options, which can be deemed bearish. <\/p>\n<p><strong>Related:\u00a0<em>\u2018Liquidity\u2019 has most affected Bitcoin\u2019s price in the last year, according to trader Brian Krogsgard<\/em><\/strong><\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/acc3f7b8-5f3b-4f4b-b98c-c88a9e892004.png\"><figcaption style=\"text-align: center;\"><em>BTC options volume put-to-call ratio. Source: laevitas.ch<\/em><\/figcaption><\/figure>\n<p>Apart from a brief moment on Feb. 25 when Bitcoin&#8217;s price traded down to $22,750, the demand for bullish call options has exceeded the neutral-to-bearish puts since Feb. 14. <\/p>\n<p>The current 0.65 put-to-call volume ratio shows the Bitcoin options market is more strongly populated by neutral-to-bullish strategies, favoring call (buy) options by 58%.<\/p>\n<p>From a derivatives market perspective, bulls are less likely to fear the recent 5.5% decline in total market capitalization. There is little that federal judges or the IMF can do to severely impair investors&#8217; belief that they can benefit from decentralized protocols and cryptocurrencies&#8217; censorship resistance abilities. Ultimately, derivatives markets have shown resilience, paving the way for further upside.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/p>\n<p class=\"post-content__disclaimer\">This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.\n<\/p>\n<p class=\"post-content__disclaimer\">The views, thoughts and opinions expressed here are the authors\u2019 alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.\n<\/p>\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. 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The total crypto market capitalization remains above the psychological $1 trillion mark and, more&#8230;<\/p>\n","protected":false},"author":1,"featured_media":557725,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/6866c299-4cac-422c-8cf9-daa9d17d752a.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74862,81209,74937,74863,74860,75012,75846,75606,81188,74939,73785],"class_list":["post-557724","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-bitcoin","tag-bitcoin-options","tag-bitcoin-price","tag-cryptocurrencies","tag-cryptocurrency-exchange","tag-derivatives","tag-futures","tag-imf","tag-janet-yellen","tag-market-analysis","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/557724","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=557724"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/557724\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/557725"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=557724"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=557724"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=557724"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}