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Nansen analyst: Investors should adopt risk-taking strategies in current market conditions

Nansen analyst: Investors should adopt risk-taking strategies in current market conditions

CointimeCointime2024/07/29 06:10
By:Cointime

Nansen analysts believe that Bitcoin investors should adopt a more risk-on strategy in the current market conditions, as technical indicators are overwhelmingly bullish. According to the company's weekly research report, the cryptocurrency market is currently bullish and there is an increased possibility of higher cryptocurrency returns after a short-term risk adjustment.

Analysts insist that investors will not resist the current bullish signals and statements, including the Fed's rate cut pricing, Donald Trump's lead in opinion polls as a US presidential candidate, Bitcoin Call-Put spreads, and Bitcoin momentum indicators (above the buying threshold).

The Call-Put spread, which measures the difference in implied volatility between bullish and bearish Bitcoin options, is currently hovering between the 10th and 90th percentiles. The implied volatility of the cryptocurrency market rose last week, soaring to its highest level since May. This trend indicates that option traders are becoming bullish and the demand for bullish options is accelerating.

In addition, the inflow of funds into spot Bitcoin ETFs is increasing, and on-chain transaction fees led by Ethereum are also growing, which is likely due to the launch of the Bitcoin ETF on July 23. The market value of stablecoins is also accelerating, indicating an increase in net inflows on-chain. (Crypto Potato)

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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