Retail crypto traders are trying to capitalize on the potential spot Bitcoin ETF approval, but pro traders have been more cautious.
The cryptocurrency market’s capitalization metric has been trading within a relatively narrow upward channel for the past 10 weeks. This indicates that bullish momentum has remained intact despite recently failing to break above the $1.7-trillion market cap resistance.
In December, Bitcoin’s (BTC) price made 20-month highs above $44,000, and Ether’s (ETH) upswing was stropped at $2,400. Some analysts argue that the excessive demand for leveraged longs (buying) will trigger a correction, but is that really the case?
Regardless of whether the ongoing bullishness has been driven by the expectation of a spot Bitcoin exchange-traded fund (ETF) approval by March, the odds of cascading liquidations exist when traders heavily rely on futures markets.
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Source: https://cointelegraph.com/news/crowded-retail-funding-rate-long-btc-eth-sol-xrp-year