US hedge funds and institutional investors reportedly remain bullish on Bitcoin (BTC) despite a massive sell-off in the crypto market this week.
According to a new one report by Bloomberg Yevgeniy Feldman, the co-founder of private brokerage firm SwapGlobal, says blue-chip investors saw an opportunity to buy crypto at lower prices as Bitcoin fell as much as 17% earlier this week.
Veldman says,
“People were extremely liquidated by longs, it was horrific. But the US hedge fund and institutional participants who trade options via OTC (over-the-counter) desks on Monday and Tuesday have returned to bullish options by buying call spreads on Solana and Bitcoin.”
Feldman says Bitcoin’s bid-to-ask ratio on US-based crypto exchange Coinbase shows that pledges to buy the most important digital asset are far greater than pledges to sell.
“Such imbalances indicate that there is a huge pool of waiting buyers at $49,000 and below.”
Although traders on offshore exchanges are buying more puts than calls, which could signal rising bearish sentiment, Ravi Doshi, the head of markets at crypto prime brokerage FalconX, says the long-term outlook for Bitcoin remains bullish, the report said .
“While the trends strongly favor curve-leading positions, the post-US presidential election trends still remain in line with the call even after the steep sell-off. As has been the case for most of the year, traders continue to expect a bullish second half of the year for Bitcoin.”
Bitcoin is trading at $54,984 at the time of writing, down 2.1% over the past 24 hours.
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