Meanwhile, regulatory uncertainties continue to be a key concern for investors, including the failed European Know Your Customer proposed rules for ”unhosted” private wallets.
On the other hand, Bitcoin borrowers can only short the cryptocurrency as they bet on its price decline.
The above chart shows that traders have been borrowing more USD Tether recently, as the ratio increased from 13 on April 14 to the current 17.
However, it became difficult to anticipate the market’s next move since Bitcoin started to drift sideways near $40,000 last week.
As displayed above, we entered the 8% “fear” mode on April 8 after 30 days ranging in a neutral area.
Consequently, sometimes the best trade is to do nothing, sit tight and wait for more clarity in price action.