3 hours ago
Crypto traders are buying bitcoin (BTC) connected Kraken, 1 of the 10 biggest cryptocurrency exchanges, arsenic the price slides to a three-month low, Alexia Theodorou, caput of derivatives told CoinDesk.
BTC dropped nether $88,000 soon earlier work arsenic Nasdaq futures pointed to continued hazard aversion connected Wall Street and the yen, a haven during times of turmoil, held beardown against the U.S. dollar and growth-sensitive commodity currencies similar the Australian dollar.
The BTC diminution follows a $1 cardinal summation successful open futures presumption connected Binance precocious Monday, astir apt owed to traders taking shorts successful anticipation of a deeper terms drop.
However, bargain hunters person stepped successful via Kraken, lifting the perpetual long-short ratio to a record-high 0.8. The ratio measures the proportionality of bargain positions unfastened comparative to progressive merchantability positions astatine immoderate fixed time.
"Despite bitcoin's terms dropping beneath $90K, Kraken has seen a surge successful traders opening agelong positions connected its BTC perpetual markets," Theodorou said successful an interview. "The long/short ratio has climbed to a grounds precocious of ~0.8, portion unfastened involvement has reached a four-week high. This suggests traders could beryllium anticipating a rebound and efficaciously 'buying the dip.'"
While grounds of dip request connected Kraken is an encouraging motion for the bulls, the long-short ratio remains beneath 1, meaning determination are inactive much shorts than longs connected the exchange.
"While this [record long-short ratio] speaks to the underlying affirmative sentiment successful the market, liquidations are inactive astatine comparatively mean levels, meaning that determination whitethorn inactive beryllium excess leverage successful the system. This could perchance permission the marketplace susceptible to further downside moves, perchance successful the signifier of a agelong squeeze, successful the near-term," Theodorou said.
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