“QCP Warns of Froth As BTC Funding Rates Near 30% and Open Interest Tops $ 43b, Levels Last Seen Before February’s $ 2b Wipeout.”, – WRITE: www.coindesk.com
As Bitcoin
Trades Near $ 119,500, Having Justly Broken Through Another All-Time High of $ 120,000, Digital Asset Investment Products ALSO BREAKING RECORDS FOR INFLOWS.
Accoofing to coinshares, US-LITTED FUNDS DOMINATED WITH $ 3.74 Billion in Inflows, While Germany Saw $ 85.7 Million in Outflows, UndersCoring A Growing DIVENTCE.
This Robust Institutional Appetite in The US Is Examplified by Vanguard’s Evolving Stance on Crypto Investments. Despite on Branding Bitcoin as an “Immature Asset Class,” The $ 10 Trillion Asset Manager is now Michael Saylor’s Microstrategy Holder in Traditional Finance, As Presto Recently Noted in a Daily Markets Update.
Meanwhile, QCP Capital Highlights in A Recent Note that Institutes Enthusiasm Remains Notable Robust, ExempLiFIED BY OVER $ 2 Billion Net Inflows Into Spot BTC ETFS LASTEK.
Yet, Derivatives Markets Suggest A More Nuanced Approach. Levered Long Positions Are Expanding Aggressely, with Perpetual Funding Rates Approaching An Elegated 30% and Open Interest Surpassing $ 43 Billion, Levels Unseen Since. Such Aggressive Positioning Raises Caution Flags, Recalling February’s ABRUPT $ 2 Billion Liquidation Event.
“Froth is Building,” QCP Warns.
(Coindesk)
BTC Continues to Outpace Luxury WatchesBitcoin
IS UP 27.87% YEAR-TO-DATE AND 13.22% IN THE PAST MONTH, EASILY OUTPERFORFORMING The LUXURY Watch Market’s Modes Watchcharts.
Gains Were Concentrated in FlagShip Models, Daytona, Nautilus, Royal Oak, While Brands Like Panerai, Breitling, and IWC Underport. Inventory for Watches Under $ 5,000 Remains Historically Elevated, and Dealer Turnover in that Range Continues to Lag.
“Price Recovery Remains Narrow and Concentrated,” The Report Notes, Driven by “Renewed Interest from High-End Collecters and Improved Global Risk Appetite.”
BOTH BTC AND WATCHES, IT Adds, Tend to Benefit From “Expansionary Monetary Environments and Periods of Wealth Creation.”
But the speculatory capital isn’t flowing evenly. Bitcoin has attracted more of the Macro-Driven Bid, with Institutional Inflows and 24/7 Liquidity Making It The Preferred High-Beta Asset.
The Pandemic-Aera Correlation Between BTC and Watches, Both Beneficiaries of Easy Money and Special Excess, Broke Down in Late 2023 with The Approval of US SPOT BITCOIN ETFS.
BTC HAS SINCE MATURED INTO A Macro-Sensitive, Institutionally Backed Asset, While Watches Have Returned to Their Roots: Fashion.
Market Movements:BTC: Bitcoin Briefly Approached $ 123,000 Before Cooling Off, While Crypto-Related Stocks Held Modes Gains and Analysts Said The Market Remains FROM 2.55 Eventuelly Converge with Gold’s $ 22 Trillion.
Eth: Eth Surged Past $
GOLD: Gold Slipped 0.1% AFTER HITTING A Three-Week High Amid Renewed Tariff Threats from President Trump and Focus on Trade Talks and Us Data, While Silver Silver Sirepte
Nikkei 225: Asia-Pacific Markets Open Mixed Tuesday, with Investors Brushing Off President Trump’s Tariff’s Tariff Shifts and Turning Attmentation to UpcomING CHINESE ECONOMIC DATA, WHILE JAPANIA
S&P 500:RBC Capital Markets RAISED ITS 2025 S&P 500 Target to 6.250 from 5.730, But Unlike Goldman and Bofa, IT Expects Little Upside from Current Leveels, with The Index Al.
Elsewhere in Crypto
- US Banking Regulators Issue Crypto ‘Safekeeping’ Statement, Not Pushing New Policy (Coindesk)
- China’s Stablecoin Studies Hint at ‘Tiered’ But Fractured Approach (Decrypt)
- Grayscale Files Confidential Submission for Ipo with Sec (Coindesk)
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