Bitcoin accumulation on exchanges may not be a bullish sign, analyst warns

Traders turned optimistic towards BTC as Implied Volatility declined.accumulation on exchanges was on the upswing. This phenomenon, although often associated with bullish sentiment, comes with subtleties that traders should heed.Despite the consistent increase in BTC accumulation on exchanges, seasoned analyst Willy Woo sounded a note of caution. He believed that optimism might be misplaced in this context.

The crucial factor here is that the futures markets, which contributed synthetic BTC to the inventory, played a balancing role. The market only exhibited a bullish trend when the futures markets changed their stance.Furthermore, Woo emphasized that investors now had an alternative avenue for gaining exposure to BTC which was futures ETFs. However, this avenue doesn’t lead to a supply shock, as these ETFs represented paper bets on price movement.

Woo underscores the need for a spot ETF in the market. For seven years, a spot ETF has been denied approval while futures markets have thrived. A spot ETF would provide a more authentic representation of actual BTC holdings.In addition to Woo’s insights, recent data from Glassnode revealed a noteworthy development. The 24-hour trading volume of Perpetual Futures Contracts on Binance hit a two-year low at $1,455,021,171.92.

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