Bitcoin’s short-term price prospects slightly improved, but most traders are far from optimistic

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Things were looking better for Bitcoin, but the joy might be short-lived.

) investors after the June 18 drop to $17,600 becomes more distant and an early ascending pattern points toward $21,000 in the short-term.Recent negative remarks from lawmakers continued to curb investor optimism. In an interview with Cointelegraph,Thomas Muser said that the decentralized finance ecosystem would cease to exist if current financial regulations are implemented in the crypto industry.

. When asked by Cointelegraph to clarify the statement on June 27, Yifan He stated that"all unregulated cryptocurrencies including Bitcoin are Ponzi schemes based on my understanding."pledged to be"brutal and unrelentingly hard" on any"bad behavior" from the cryptocurrency industry. These fixed-month contracts usually trade at a slight premium to spot markets because investors demand more money to withhold the settlement. Consequently, futures should trade at a 5% to 10% annualized premium in healthy markets. One should note that this feature is not exclusive to crypto markets.Whenever this indicator fades or turns negative, this is an alarming, bearish red flag signaling a situation known as backwardation.

To exclude externalities specific to the futures instrument, traders must also analyze the Bitcoin options markets. For instance, the 25% delta skew shows when Bitcoin whales and arbitrage desks are overcharging for downside or upside protection.

 

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