Following the recent drop in the price of bitcoin and other crypto assets, hedge funds at the Chicago Mercantile Exchange are rolling their short bets into other markets that they deem more lucrative in the short term. However, this could be seen as a bullish signal.
How Crypto Investors Should Trade The Ether Climbdown
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After a week of heavy trading, the price of ether, Ethereum’s native token, remains stuck 25% below its recent all time high above $4,000. During the surge and subsequent climbdown, many bullish investors made handsome profits. However, some latecomers, especially those who traded on leverage, found themselves on the wrong side of the market. It is important for both institutional and retail investors to tread carefully moving forward as we wait for a market reversal.
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A relatively obscure indicator on the world’s largest regulated crypto derivatives exchange suggests that institutional interest in bitcoin is tapering. With bitcoin stuck in the mid-$50,000’s, it will be difficult for the dominant cryptocurrency to push $60,000 again without a trend reversal.