Originally published on: July 29, 2022
Bitcoin’s recent rally was fueled by the Federal Reserve’s decision to raise interest rates, creating a positive outlook for risk assets. Investors interpreted the Fed chairman’s statement as dovish, signaling an easing of tight economic policies.
Positive news from the U.S. personal consumption expenditures price index and strong financial results from Amazon and Apple further boosted market sentiment. Amidst this backdrop, professional traders are stacking sats, increasing their leverage long positions despite Bitcoin’s struggle to flip $24,000 to support.
Data from top exchanges like Binance, Huobi, and OKEx show a rise in traders’ bullish bets, indicating confidence in Bitcoin’s future performance. While there was a slight correction in Bitcoin’s price, the absence of panic selling suggests a bullish sentiment among professional traders.
Margin trading is also on the rise, with investors leveraging their positions to maximize returns. Charting the margin lending ratio reveals a bullish trend, signaling a positive market sentiment among traders. Despite Bitcoin trading below $21,000 on July 26, derivatives data shows no stress from pro traders, indicating strong conviction in the market.
As Bitcoin continues to face resistance at $24,000, professional traders remain unfazed, showcasing their optimism through increased bullish positions. This data suggests that those expecting a market correction may be in for a surprise as experienced traders hold on to their convictions.
Investors should conduct their own research before making any decisions, as every investment and trading move carries inherent risks. For more insights and analysis on market trends, subscribe to the Markets Outlook newsletter for critical updates delivered every Monday.
