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Skew Analysts Dismiss Six Bitcoin Misconceptions of Institutional Investors

Skew analysts have something to say amidst increased institutional interest in Bitcoin (BTC)

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Cover image via stock.adobe.com

Skew, a leading on-chain data vendor focused on derivatives trading, has shared a blog post that covers the six most difficult questions from institutions that are considering Bitcoin (BTC) as an investment.

Crypto king: liquid, active, growing

Skew representatives admitted that they are frequently asked about how liquid the Bitcoin (BTC) market is today. An analyst noticed that, while Bitcoin (BTC) spot market volume surpassed $500 mln in 24 hours, Bitcoin (BTC) futures platforms managed to on-board way more liquidity though this segment is less than three years old.

Even Bitcoin (BTC) options markets, despite being in a nascent stage of development, surpass $750 mln in 24 hours within periods of increased trading activity. All sorts of derivatives trading ecosystems are gaining steam, historical data shows.

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In terms of periodic activity, Bitcoin (BTC)despite being available for trading 24/7follow some rules of "classic" assets:

However, we see behavior similar to the equity markets with mostly quiet weekends and a substantial pick up in activity around the US open.

Mid-term Bitcoin (BTC) behavior also demonstrates clear patterns, with a mostly bearish Q1 followed by a bullish Q2.

Don't overestimate Bitcoin's (BTC) volatility

Also, investors are concerned about "steep curves," i.e., low APY calculated in U.S. Dollar equivalent. Skew stresses that this should be attributed to a very limited amount of cash available on most crypto platforms. Additionally, this factor may be mitigated by the growing popularity of lending/borrowing ecosystems that accept crypto as collateral.

Skew analysts are very far from indicating either retail or institutional interest as a main catalyst of the ongoing Bitcoin (BTC) rally. They highlight that derivatives markets are setting new ATHs in trading volume while Google searches for Bitcoin (BTC) are nowhere near late-2017 levels.

Insane volatility is what the crypto king is criticized for by aggressive anti-Bitcoiners. However, Skew noticed that Bitcoin (BTC) either gained or lost less than 2 percent of its price within 207 days of this year.

Skew Analysts: Bitcoin isn't too volatille
Image by Skew

Finally, Skew researchers shared statistics on expectations based on futures market data analysis. According to Skew, 7 percent of Bitcoiners expect their beloved asset to cost $40,000 by the end of Q2, 2021.

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Vladislav Sopov

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)