VanEck Research Director: BTC derivatives protective demand reaches historical extreme levels, signaling a contrarian bullish indicator

ME News message, April 4 (UTC+8), VanEck research director Matthew Sigel posted an analysis on the X platform pointing out that the current protective demand in the Bitcoin derivatives market has risen to the 99th percentile in history. It is typically seen as an “anti-long signal” under extreme risk-off sentiment in the market, and he judged that the market is currently suitable for establishing long positions. VanEck Digital Transformation ETF (NODE), which Matthew Sigel also manages, is up 27% since its launch, while Bitcoin is down 33% over the same period. Through diversified allocation and a focus on profitable segments, it has achieved lower volatility. However, he also warned that if large capital expenditures in the artificial intelligence (AI) space by companies fail to generate corresponding returns, it could pose substantial pressure on the market, especially in a context where weights are concentrated in S&P 500 constituent stocks. Note: Percentiles are a statistical position concept; the 99th percentile represents a relatively extreme degree, while the 50th percentile represents the horizontal median. (Source: ChainCatcher)