In the turbulent cryptocurrency landscape, grasping investor sentiment can be an essential but intricate source of insight. Ki Young Ju, the CEO and co-founder of CryptoQuant, has recently indicated that significant investors continue to approach the market with a “risk-on mode.”
In a post shared by Ki Young Ju on the microblogging platform X (formerly known as Twitter) with his extensive following of over 300,000 users, it was highlighted that Bitcoin whales are still displaying a willingness to take risks by transferring their coins to derivatives trading platforms.
The analyst’s chart illustrates the “interexchange flow pulse,” which measures the net one-year flow of BTC between the Nasdaq-listed cryptocurrency exchange Coinbase and derivative exchanges.
An increase in this metric signifies that investors are transferring more BTC from spot exchanges to derivative platforms, indicating a heightened appetite for risk.
The chart highlights that Bitcoin enters a bullish phase when the indicator exceeds its 90-day moving average (MA), as it presently does. This pattern was also observed in 2017 and from 2019 to 2021. Conversely, when the indicator falls below its 90-day MA, Bitcoin tends to enter a bearish phase.
Despite the cryptocurrency market trading in a sideways fashion over the past few weeks, major financial giants, collectively managing an astonishing $27 trillion in assets, are making significant strides in the realm of Bitcoin and cryptocurrency. This surge of interest was triggered by the race to introduce the first spot Bitcoin exchange-traded fund (ETF) in the United States.
As highlighted by Meltem Demirors, Chief Strategy Officer at CoinShares, at least eight financial powerhouses, including BlackRock, Fidelity, JP Morgan, Morgan Stanley, Goldman Sachs, BNY Mellon, Invesco, and Bank of America, are actively working to provide access to Bitcoin and more.
BlackRock, the world’s largest asset manager, made a groundbreaking move on June 16 by filing an application for a spot Bitcoin exchange-traded fund, setting off a chain reaction as other firms hurried to submit similar applications.
It’s important to note that the $27 trillion figure represents the total assets under management across the mentioned institutions, and only a small portion of this substantial sum is expected to be allocated to cryptocurrency investments.