BTC’s recent correction has revealed a disconnect between professional traders and retail investors. Despite regulatory shifts and skepticism from retail investors, BTC derivatives have remained strong, indicating that bulls are still confident. In China, Tether (USDT) is trading below its fair value in the local currency, suggesting differing expectations between professional traders and retail clients. The put-to-call volume ratio of BTC options shows a diminished demand for protective measures, despite increased regulatory scrutiny. The BTC futures premium has fluctuated but remains relatively optimistic. Retail traders, on the other hand, are less optimistic due to the absence of a short-term positive trigger like the approval of a spot Bitcoin ETF. The USDT premium relative to the yuan has hit its lowest point in over four months, indicating potential liquidation or regulatory concerns among retail traders. Professional traders remain unfazed by short-term corrections and regulatory actions, while retail investors are more cautious. The disparity in time horizons and recent regulatory actions could lead to increased participation by institutional investors in the future.
