Bitcoin: Less borrowed funds, longer retention

In comparison with the previous achievement of the ATN in March, this time the interest in Bitcoin is based on an investment approach with long-term retention. The use of borrowed funds or leverage when trading futures contracts decreased from 70.1% in April to the current 44.6%. This reduces the volatility of Bitcoin, since price corrections are less likely to cause forced closing of positions.

A significant boost in the growth of investment demand was given by the approval of ETFs for Bitcoin futures. Now every American investor with access to the stock exchange can invest in cryptocurrency. The regulator’s kind attitude to digital assets was also reflected in Bitcoin futures trading: on the Chicago Stock Exchange, trading volume reached a new record of $7.7 billion, and open interest in contracts jumped by 265% in a month.

At the last reaching of the $60 thousand zone, the hodlers threw off part of their stocks, fixing the profit of the autumn rally. Now they continue to hold coins, despite the overall increase in assets in the amount of 2.4 million BTC since the spring of this year, as they expect continued growth.

Bitcoin’s volatility is still high, compared to gold or stock indexes

However, its values have decreased from 300% in 2013 to the current 70%, and with an increase in the number of users and a decrease in the share of margin funds in the total volume, stability will only increase.

Now Bitcoin is trying to gain a foothold above the key resistance of $ 60 thousand, and a number of technical experts hint at the possible formation of a “double top” figure.

Nevertheless, institutional interest is on the rise, and eminent financial institutions predict Bitcoin to replace gold as a savings asset. Coupled with the growing inflation in the world, this opens up opportunities for growth to new large levels.