Summary
- Markus Thielen of 10x Research said the Bitcoin (BTC) rally has unfolded on weak trading volume, raising questions about its sustainability.
- He said negative funding rates in the perpetual futures market suggest the market is being driven by institutional investors’ hedging strategies rather than retail traders.
- The market is focused on the disconnect between the apparent price increase and underlying supply and demand, with a recovery in trading volume and trends in the derivatives market seen as key to whether the rally can continue.
Forecast Trend Report by Period
Bitcoin’s climb is masking signs of caution in underlying market indicators, even as the token continues to rise.
CoinDesk reported on April 27 that 10x Research founder Markus Thielen said the latest Bitcoin rally has unfolded on weak trading volume, casting doubt on its sustainability.
Recent gains were likely driven more by spot buying or short covering than by strong conviction among long-term investors, he said.
Thielen also highlighted that funding rates in the perpetual futures market have remained negative despite Bitcoin’s strong monthly advance.
That suggests the market is being driven more by institutional hedging strategies than by retail investors.
Market participants are watching the disconnect between the headline price increase and underlying supply and demand. Whether trading volume recovers and how the derivatives market develops will be key to determining if the rally can continue.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
