30s Summary
Bitcoin and related cryptocurrencies have seen a surge in interest since Trump’s return to office, with Bitcoin reaching over $93,000 last week. In response to this, JPMorgan’s retail sentiment score, a measure of everyday investor sentiment towards cryptocurrencies, hit a record high. Demand for Bitcoin ETFs also surged. Crypto’s rise saw MicroStrategy, a Bitcoin-rich company, witness record bullish sentiment in its options market. As favourable views of crypto persist in the market, analysts warn that these bullish trends may lead to sudden and potentially stressful shifts.
Full Article
Bitcoin and anything related to crypto have been (for lack of a better term) on fire since Trump’s return to office. If you’re thinking about hopping on the crypto train, be ready for a wild ride. According to data tracked by folks at JPMorgan and other firms, it’s getting pretty crazy out there.
Bitcoin rocketed past $93,000 last week and inflows into US-based Bitcoin and crypto stocks went through the roof. As a result, JPMorgan’s retail sentiment score hit a record 4. This nifty little measure looks at how everyday investors feel about cryptocurrencies, especially Bitcoin.
Demand for Bitcoin ETFs soared after the election results, leading their sentiment score to the highest point ever. A sentiment score of 3.4 (or higher) shows serious demand, well above the average.
Meanwhile, MicroStrategy, a company that holds a lot of Bitcoin, had its options market show record bullish sentiment. This is usually a sign of frenzied trading that we often see at the peaks of the market.
The one-year 25-delta put-call skew dropped to -26.7% last Wednesday which basically means call options (these are used to hedge against or make money from price rises) were much more expensive than puts (which protect against price drops). The skew improved slightly to -11.8% on Friday but still shows a strong bias for bets on the upside.
While Bitcoin and crypto assets could be good investments in the long term, soaring sentiment from retail investors can cause sudden and potentially stressful shifts in the market. So, buckle up and enjoy the ride!