Bitcoin in the $87,000 range shows strength... Attention on rebalancing demand

Source: DecenterKorea Original Title: Bitcoin remains strong in the $87,000 range… Attention on rebalancing demand [Decenter Market Overview] Original Link: https://www.decenter.kr/NewsView/2H1RJLO6GV/GZ03

As of 8 a.m. on the 16th, based on Bithumb, BTC closed at 13,062,200 KRW, up 0.60% from the previous day.

Bitcoin(BTC) is showing strength in the $87,000 range. It is analyzed that the quarterly returns are significantly lagging behind stocks, and rebalancing buying pressure could flow in toward the end and beginning of the year.

According to CoinMarketCap, a global virtual asset market data site, at 8 a.m. on the 17th, BTC was trading at $87,749.63, up 2.07% from the previous day. Ethereum(ETH) is trading at $2,952.46, up 0.49%. BNB(BNB) rose 2.59% to $873.37, XRP(XRP) increased 2.24% to $1.926, and Solana(SOL) rose 1.87% to $128.58.

The domestic market shows a similar trend. As of the same time, based on Bithumb, BTC was at 13,062,200 KRW, up 0.60%. ETH was up 0.32% at 4,394,000 KRW, XRP was up 0.07% at 2,866 KRW, and SOL was down 0.16% at 191,200 KRW.

Cryptocurrency-related stocks also rebounded after a sharp decline the previous day.

Market observers suggest that the demand for portfolio adjustments ahead of the year-end could support BTC prices. Bettle Runde, head of research at European cryptocurrency research firm K33, said, “Asset management firms that have set BTC allocation targets in advance may start buying during the year-end asset rebalancing process.” It is also analyzed that there could be increased capital inflows around the last trading day of the year and early January. He pointed out that BTC has lagged 26% behind the S&P 500 index in the fourth quarter of this year.

However, market participants’ risk appetite is considered limited. Runde said, “The open interest in Bitcoin futures on the Chicago Mercantile Exchange(CME) is about 124,000 BTC, the lowest level of the year,” and “The perpetual futures funding rate remains neutral, indicating low confidence in short-term direction.” Spot trading volume also decreased by 12% last week, suggesting a cautious stance ahead of the year-end.

Cryptocurrency investment sentiment remains in a state of ‘extreme fear.’ The Alternative.me Fear & Greed Index fell 5 points from the previous day to 11 points. The index indicates that the closer to 0, the more depressed the investor sentiment, while closer to 100 indicates market overheating.