Top cryptocurrency news: Despite evidence showing professional traders stacking sats, Bitcoin struggles to flip $24K to support.
Whales remain solid, according to BTC futures and stablecoin margin data, even though the price of Bitcoin failed to hold above $24,000.
Following the US Federal Reserve's decision to raise interest rates on July 27, Bitcoin (BTC) gained momentum. Investors perceived Jeremy Powell, chairman of the Federal Reserve, as being more dovish than at the previous FOMC committee meeting, indicating that the worst of tight economic policies may have passed.
The U.S. personal consumption expenditures price (PCE) index, which increased 6.8% in June, was another piece of good news for risk assets. The reduction in incentives for fixed income investments was the greatest since January 1982. Because the PCE measures changes in prices for products and services that the general public consumes, it provides a more comprehensive picture of inflation pressures than other measures used by the Federal Reserve.
Amazon said that its quarterly financial results exceeded the $119.5 billion projected revenue by 1.4 percent, which is further good news. Additionally, Apple reported its 2Q results on the same day, revealing earnings that were 3.4 percent higher than the market average while matching analyst revenue forecasts.
Traders at the top have boosted their optimistic wagers.
The long-to-short net positioning of traders is highlighted by exchange-provided statistics. One can determine whether professional traders are leaning bullish or bearish by looking at each client's position on the spot, perpetual, and futures contracts.
Viewers should focus on changes rather than absolute numbers because there are occasionally differences in the methodology used by different exchanges.
Top traders on Binance, Huobi, and OKEx have raised their leverage longs despite Bitcoin's 14% fall from July 20 to July 26. To be more precise, the top traders' long-to-short ratio on Binance was the sole exchange to see a slight decline, going from 1.22 to 1.20.
The fact that OKEx traders increased their bullish bets from 0.66 to 1.17 in just six days more than offset this impact. It is positive to interpret the lack of panic selling after Bitcoin failed to break the $24,000 support on July 20.
The price rise would have done serious harm to the long-to-short ratio if buyers had been utilising excessive leverage or were wary of a potential gain.
Margin traders avoid making bearish wagers
By using borrowed cryptocurrencies to leverage their trading position, investors can increase returns through margin trading. For instance, one can increase their exposure to cryptocurrencies by borrowing Tether (USDT) and buying Bitcoin. However, borrowing Bitcoin can only be done as a short, or betting against the price falling.
The balance between margin longs and shorts isn't always equal, unlike with futures contracts. The market is bullish when the margin lending ratio is high; conversely, the market is bearish when the lending ratio is low.
Even though Bitcoin fell below $21,000 on July 26, derivatives data reveals no signs of panic among professional traders. These seasoned whales, as opposed to regular traders, are aware of when to stick with their convictions, and the strong derivatives data clearly demonstrated this mindset. According to the research, traders who anticipate a significant market downturn should Bitcoin fail to overcome the $24,000 resistance will likely be dissatisfied.
