Data shows pro Bitcoin traders want to feel bullish, but the rally to $23K wasn’t enough
Bitcoin (BTC) price had a mixed reaction on Jan. 25 after the United States reported a 2.9% gross domestic product growth in the fourth quarter, slightly better than expected. Still, the sum of all goods and services commercialized between October and December grew less than 3.2% from the previous quarter.
Another data set limiting investors’ confidence was the likelihood that the U.S. Federal Reserve would not revert its contractive measures anytime soon after U.S. durable goods orders jumped 5.6% in December. The indicator came in much higher than anticipated, so it could potentially mean that interest rates will be increased for a little longer than expected.
Oil prices are also still a focus for investors, with West Texas Intermediate (WTI) approaching its highest level since mid-September, currently trading at $81.50. The underlying reason is the escalation of the Russia-Ukraine conflict after the U.S. and Germany decided on Dec. 25 to send battle tanks to Ukraine.
The United States Dollar Index (DXY), a measure of the dollar’s strength against a basket of top foreign currencies, sustained 102, near its lowest levels in eight months. This signals low confidence in the U.S. Federal Reserve's ability to curb inflation without causing a significant recession.
Regulatory uncertainty could also have been vital in limiting Bitcoin's upside. On Jan. 26, De Nederlandsche Bank, the Dutch central Bank, fined cryptocurrency exchange Coinbase $3.6 million due to non-compliance with local regulations for financial service providers.
Let's look at derivatives metrics to understand better how professional traders are positioned in the current market conditions.
Margin markets provide insight into how professional traders are positioned
Read more on cointelegraph.com
