The expert named three reasons for the weak dynamics of bitcoin

Implementation of the idea of ​​the “influx of institutional”, the ease of opening shorts as a hedge from the fall of the market and the growth of the popularity of paired trading with other cryptocurrencies explain the weak dynamics of bitcoin regarding other digital assets.

1/ BTC HAS Lagged the Performance of OFTER CRYPTO ASSETS THROUGH THE LAST CYCLE

Most Tradeers Intuitive Feel that BTC TraDES “Heavy” – who is this happy?

there’S Two Simple Metrics We Can Look at to Validate What We Intuitive Feel: Pic.Twitter.COM/WOB30WJI6X

– Joshua Lim (@joshua_j_lim) August 29, 2022

The head of the Genesis Trading unit, according to Derivatives of Joshua Lim, explained that such a “heavy” digital gold is well manifested in the rates of ETH/BTC and the dominance of the first cryptocurrency.

The first metric (0.0733) pulled up to the historical maximum (0.088). The preference of Ethereum bitcoin is also manifested in the proportion of trunks to collis in options – 0.24 to 0.53. The second metric remained near a historical minimum of 40%, despite the bear market. The expert explained this by an increase in the share of the second in capitalization of cryptocurrency.

Lim explained that the factor of flows from the institutional has exhausted itself, since bitcoin is available through the futures on CME, exchange products and even through direct investments (Coinbase shares).

The first cryptocurrency is already a significant share of digital assets in the portfolio for most traditional investors. This means not only an asset that they get rid of the market turning, but also the one that is closed as beta-hail.

The latter confirms the fact that the daily bitcoin trade volume is $ 30 billion and forms 44% of the open interest, despite the surge in interest in Ethereum speculation, Lim is convinced.

The expert noted that the prospects of Bitcoin were challenged by the value of the second in capitalization of cryptocurrency due to the upcoming The Merge.

The situation with the distribution of coins as part of the MT process can also be affected by digital gold. GOX and lack of confirmation of the thesis that bitcoin is a hedge of inflation.

According to Lim, the relevance of the factors he mentioned will be tested by time after the merger. Before this event, he sees no reason for Bitcoin to bargain “better than the market”.

Recall, on August 26, the first cryptocurrency updated the minimum from mid -July after the performance of the head of the Fed Jerome Powell. The next day, Bitcoin failed $ 20,000.

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