Looking at the Bitcoin chart from a weekly or daily perspective gives a bearish outlook, it is clear that the price (BTC) has always been below the all-time high of $69,000.

Surprisingly, the November 10 price peak occurred when the United States announced high inflation in the past 30 years. However, due to concerns about the Chinese real estate developer Evergrande, sentiment quickly reversed. This seems to have affected the wider market structure.

Traders are still afraid of stablecoin regulation
After the initial correction phase, regulators and policy makers put relentless pressure on stablecoin issuers. The first is that the United States rejected Vanek’s Bitcoin ETF. This. The Greek Capital Market Committee on November 12. The rejection is directly related to the untrustworthy view of Tether’s stablecoin (USDT) and concerns about Bitcoin price manipulation.

On December 14, U.S. assets. The report said: “The committee recommends that state and federal regulators evaluate existing regulations and tools that can be applied to digital data.”

The premium of the CME Bitcoin futures contract reflects the deterioration of investor sentiment. This metric measures the difference between long-term futures calculated at the current spot price in the regular market.

When the indicator goes out or becomes negative, this is a worrying red flag. This situation is also called a return, which means there is a Bavarian feel.

Bitcoin CME’s 2-month term premium to Coinbase/USD. Source: TradingView
Fixed-month contracts usually involve a small premium, which indicates that the seller is asking for more money to withdraw the settlement over a longer period of time. Futures contracts must be traded on a healthy market at a premium of 0.5% to 2% per year. This situation is called a futures premium.

Note how the index fell below the “neutral” range after December 9th, as Bitcoin was trading at less than $49,000. This shows that institutional traders are showing a lack of confidence, even if it is not a downturn structure.

Top traders are increasing their bets
The data provided by the exchange highlights the short-term position of remote networks for traders. By analyzing each client’s on-site position, perpetual contracts and futures contracts, you can better understand whether professional traders are sloping upwards or downwards.

There are occasional differences in methodologies between different exchanges, so viewers should watch changes rather than absolute numbers.

Long-short ratio exchange for leading bitcoin traders. Source: Coinglass.com
Although Bitcoin has experienced a 19% correction since December 3, top traders in Binance, Huobi, and OKEx have increased their leverage requirements. More precisely, Binance is the only stock market where the long-short ratio of top investors has declined slightly. The percentage has changed from 1.09 to 1.03. However, this effect was offset by Okex investors raising their bets from 1.51 to 2.91 within two weeks.

Related: US Securities and Exchange Commission member Elend Reisman will step down at the end of January

The lack of a premium for 2-month CME futures should not be considered a “red alert” because Bitcoin is currently encountering resistance at $46,000, which is the lowest daily closing price since October 1. In addition, leading derivatives traders rose sharply. Despite the price drop.

Regulatory pressure is unlikely to increase in the short term, but it is also not pressure from the United States. These companies can move outside the United States. Therefore, at the same time, there is almost no panic in the market, and data shows that professional traders are buying down.

The views and opinions expressed here only represent the views of the author and do not necessarily reflect the views of Cointelegraph. Every investment and transaction involves risks. When making a decision, you need to conduct your own research.

Source: CoinTelegraph