Evergrande Breakdown Influence on Bitcoin

Despite the Evergrande explosion, which also affected stock exchanges, traders are still buying Bitcoin.

It seems that the developments in the global stock markets at this stage do not prevent professional traders from buying BTC.

Bitcoin investors seem to be worried about growing speculation over whether Evergrande Group, one of China’s largest real estate developers, will pay $ 300 billion in debt. Traders’ fears are reflected in the fact that the morning opening has been reduced from 1.5% to 3% on global stock exchanges.

Despite the price fluctuations, the outflow of BTC from the exchanges continues. Traders are also aware that all businesses have different customer profiles. Some of them are very conservative, some of them are extreme.

To determine how professional traders lean, it is necessary to analyze the futures premium. This indicator measures the difference between the level of the market in place and long-term futures contracts. In healthy markets, an annual dividend of 5% to 15% is expected. The price difference is because sellers ask for more money to stop paying for longer. A red signal appears when this indicator either disappears or turns negative.

To assess professional traders ‘ positions accurately, investors need to control large traders’ long and short ratios in leading cryptocurrencies. This leverage provides a complete view of traders’ position by collecting marginal markets and multiple futures data.

Conclusion

Bitcoin is the most popular digital cryptocurrency and is becoming more and more relevant to traders. Many businesses use it as an exchange, while some consumers invest.

Since 2009, people interested in Bitcoin have been able to make digital financial transactions without the intervention of a financial institution. Bitcoin is the first digital currency to use blockchain to secure transactions.

Although the price of Bitcoin has changed recently, the fact is that it is still relevant for traders. It is difficult to predict in advance how the value of Bitcoin will change. At one point, it should be noted that it has made considerable progress; however, changes that have also affected the financial sector have halted its progress.

Maybe if the external or internal changes were not radical, the value of Bitcoin would rise again.

However, factors such as the global pandemic and other external events that cannot be fully controlled at this stage are unknown how they will affect the price of digital cryptocurrency. We have to wait for updated prices of the most popular digital currency.