Bitcoin Skyrockets After The US Election, Here's The Condition Of Retail Investors Now

JAKARTA - Donald Trump's victory in the US Presidential Election on November 5 seems to trigger a recovery in the crypto market. Bitcoin (BTC) and other altcoins have surged significantly in recent days. However, recent data from JPMorgan warns that this euphoria can bring high volatility forward, especially with retail market sentiment setting the highest record.

JPMorgan noted that the retail sentiment indicator for Bitcoin hit a score of 4, the all-time high, after the price of BTC hit a high of above $93,000 last week. This spike was driven by strong inflows into Bitcoin's ETF products in the US. According to JPMorgan's report, demand for the Bitcoin spot ETF recorded a significant increase, reflecting the extraordinary interest of retail investors in this crypto asset.

In a note released to investors, the JPMorgan equity research team said, "The request for Bitcoin ETF was very strong after the election results were announced. Positive sentiment was also seen in COIN. The indicator of sentiment for the Bitcoin family (both physical and other ETFs) jumped to the highest multi-sigma level."

However, this price increase is not without obstacles. Last week, there was a sharp increase in the outflow from the spot's Bitcoin ETF, followed by a massive sell-off from Bitcoin miners. This caused the price of BTC to fall to US$87.000 (Rp1.37 billion) before returning to US$90,000 (Rp1.42 billion) at the weekend. This movement indicates a tight battle between bullish investors and bearish in the market.

MicroStrategy And Bullish Sentiment In Option Market

The large Bitcoin holding company, MicroStrategy (MSTR), also recorded a sharp spike with its shares hitting new highs. MSTR shares have long been traded with a large premium against the value of Bitcoin, reflecting the high demand for BTC's aggressive purchases by the company.

Data from the Chameleon Market shows outstanding bullish sentiment in the MSTR stock-related options market. Last Wednesday, a year's "put-call skew" fell to -26.7%, indicating that the buying option (call options) was trading with a much higher premium than the selling option (put options). Although this indicator improved to -11.8% on Friday, market bias against increase remained strong.

Markets analysts &Mayhem noted, "The euphoria of buying options on MSTR is so high that it's hard to imagine there won't be a significant drop unless Bitcoin continues to move in a parabolic pattern up."