New DailyFX Data Shows Crypto Asset Investors Remain Bullish About Bitcoin’s Bright Future
According to data published by DailyFX, Bitcoin (BTC) investors remain bullish about the future of this digital asset. The numbers provided by DailyFX show that almost four out of five investors in Bitcoin believe that the asset will grow in the future.
Although Bitcoin was traded in a bear trend during 2018, investors seem to be very positive about what is ahead of Bitcoin and the cryptocurrency market. This is the highest level registered since November 2018.
Fan Xu, a research analyst at DailyFX commented in a post a few days ago:
“Bitcoin: Retail trader data shows 77.5% of traders are net long with the ration of traders long to short at 3.44 to 1. The number of traders net long is 0.4% lower than yesterday and 6.2% higher from last week, while the number of traders net short is 2.7% lower than yesterday and 6.4% lower from last week.”
Why are individuals so long in Bitcoin when the market did not behave so positively for this digital asset? One of the reasons could be related to the fact that other altcoins such as Ethereum (ETH) or Litecoin (LTC) grew more than 50% since their lowest point a few days ago. Bitcoin Cash (BCH) and EOS have also performed well during the last few weeks.
In general, the altcoin market tends to grow faster than Bitcoin during rallies but they also fall further during bear trends. This is what happened between 2017 and 2018. Bitcoin grew exponentially to $20,000 in 2017 but its market dominance fell that year. However, in 2018, Bitcoin dropped down to $3,200 and its market dominance grew from around 32% to more than 55%.
According to Xu, they usually take a contrarian view to crowd sentiment. If traders are net-long on Bitcoin, it could mean that prices may fall even further.
At the moment of writing this article, Bitcoin is the largest digital currency with a market capitalization of $66.9 billion. Each BTC can be purchased for $3,831 according to CoinMarketCap.