Nansen Analyst: Investors Should Adopt Risky Investment Strategies in Current Market Conditions

Nansen analysts believe that Bitcoin investors should adopt a more risky (risk-on) strategy in the current market conditions, as technical indicators are bullish across the board. According to the firm's weekly research report, the cryptocurrency market is currently bullish and increases the likelihood of higher risk-adjusted cryptocurrency returns in the near term. Analysts insist that investors will not resist the current bullish signals and narratives, including Fed rate cut pricing, U.S. presidential candidate Donald Trump dominating the polls, Bitcoin Call-Put spreads, and Bitcoin Momentum Indicator (above the buy threshold). The Call-Put Spread, which measures the difference in implied volatility between Bitcoin calls and puts, is currently hovering between the 10th and 90th percentile. Implied volatility in the crypto market rose last week and spiked to its highest level since May. This move suggests that options traders are becoming bullish and demand for call options is accelerating. Additionally, inflows into the spot Bitcoin ETF are increasing, along with Ether-led on-chain transaction fees, most likely due to the launch of the Bitcoin ETF on July 23rd, and market capitalization of Stablecoin is accelerating, suggesting an increase in net on-chain inflows.