VanEck’s Head of Digital Asset Research Matthew Sigel has turned bullish on Bitcoin, taking a long position after derivatives markets showed protection demand hitting the 99th percentile, a contrarian signal.
"What's happened in the derivatives market for Bitcoin leaves me much more bullish,” Sigel told Anthony Pompliano on Wednesday, adding, "We're long here."
The signal comes as bitcoin trades below $66,000, down over 3% in the past 24 hours as of 14:30 UTC. The move reflects a broader market downturn, with bitcoin roughly 45% below its October all-time high. Open interest in major USD- and USDT-denominated futures has diverged from BTC’s recent recovery attempts, suggesting a lack of strong conviction from leveraged traders and a market dominated by spot activity and short covering.
Sigel's contrarian call suggests that the peak bearishness indicated by the extreme demand for downside protection could precede a market reversal. If other institutional players follow VanEck's lead, it could inject significant buying pressure, potentially establishing a floor and challenging the prevailing narrative of a prolonged bear market characterized by "time pain" and sideways consolidation. The next key resistance level for Bitcoin is seen at $75,000.
This article is for informational purposes only and does not constitute investment advice.
