The price of Bitcoin will continue to experience volatility until consumers begin to enter the market, rather than entrepreneurs who are looking for arbitration opportunities, according to a crypto venture capitalist.
“This is a classic case of liquidity games. The ETFs have not only brought long-term-carrying fence funds running short-term arbitration,” Master Ventures founder Kyle Chasse said in a February. 27 x Post.
Hedge funds are chasing the “low risk yield” in Bitcoin
“For months, fence funds have exploited a low-risk yield trade using BTC spot ETFS & CME Futures,” Chasse added.
He said volatility would continue for Bitcoin (Btc) As leveraged positions are opened and the cash and carry the trade will “keep in love.” “BTC needs to find real organic consumers (not just fence funds that take yield),” he said.
Chasse explained that hedge funds make income in trading the difference between the price of bitcoin futures and the price of the Bitcoin area, as the price of the future is higher.
But as the market collapses, the price difference is “collapsed,” which makes trade unprofitable. It is more commonly known as cash and trading.
Chasse said:
“Fence funds don’t care about Bitcoin.”
Echoing a similar emotion, 10x head of research research Markus Thielen Explained In a Feb report.
However, Chasse explained that the fence funds never “betting” the price of bitcoin in the skyrocket; Instead, they are chasing low -risk produce.
Source: Michael Saylor
Bitcoin’s price fell below $ 80,000 in the first time since November 10, which has broken that level Following Donald Trump’s reelection In the US presidency election.
Bitcoin has fallen below $ 80,000 for the first time since November
At the time of publication, Bitcoin traded at $ 79,532, as per TradingView Data.
Bitcoin trades at $ 79,532 at the time of publication. Source: Tradingview
SwyftX lead analyst Pav Hundal told Cointelegraph that while Bitcoin could see more downsides, most of the rolling played.
“We probably see that Bitcoin’s test is lower at this point, but it is likely that most injuries have been done,” Hundal said. He added that the upcoming US inflation data on February 28 could improve market conditions if it were lower than expected.
Related: Basic metrics show bitcoin no longer, with bullish year ahead: analyst
“Now that the trade is dead, they are taking liquidity – leaving the market in the free fall,” Chasse said.
Since Bitcoin dropped below $ 90,000 on February 25th, many analysts blames macroeconomic uncertainty and concerns over Trump’s suggested tariffs for falling into both Bitcoin and the broader crypto market.
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This article does not contain investment advice or recommendations. Every transfer of investment and trading involves risk, and readers should conduct their own research when deciding.
