VanEck Research Director: Protective Demand for BTC Derivatives Reaches Historical Extremes, Signals Contrarian Long Opportunity

Deep Tide TechFlow reports, on April 4th, 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 historically. This is typically regarded as a 'contrarian long signal' under conditions of extreme market risk aversion, and he believes the current market phase is suitable for establishing long positions. Matthew Sigel, who also manages the VanEck Digital Transformation ETF (NODE), noted that since its inception, the fund has risen 27%, while Bitcoin has dropped 33% during the same period. By diversifying allocations and focusing on profitable sectors, the ETF has achieved lower volatility performance. However, he also warned that if the massive capital expenditures by companies in the artificial intelligence (AI) sector fail to generate corresponding returns, it could exert substantial pressure on the market, especially given the concentration of weight in S&P 500 constituent stocks. Note: Percentile is a statistical concept indicating relative position. The 99th percentile represents an extreme level, while the 50th percentile represents the median level.