JPMorgan’s $BTC Sentiment Score Soars, MicroStrategy to Beef Up Its Stash
KEY TAKEAWAYS
- JPMorgan's retail sentiment score suggests extreme investor optimism for $BTC and related products.
- MicroStrategy's and Metaplanet's aggressive $BTC acquisitions are paying off as MSTR stock rises by 55.51% and JP:3350 by 57.63% month-to-date.
- The high put-call skew for MSTR options indicates extreme bullishness, which could be a precursor to a market correction.
JPMorgan's retail sentiment score hit its record high of four, indicating an extremely optimistic investor outlook. Last week, $BTC climbed to its new all-time high (ATH) of $93.4K, and inflows into $BTC ETFs surpassed $1.6B.
Investment giants like Metaplanet believe the bull run is far from over. Metaplanet announced a bond sale this morning to top up its $92.3M $BTC stash.
Without further ado, let's unpack the current market situation.
Retail Bulls Bet on $BTC and MSTRJPMorgan's retail sentiment score measures how retail investors feel about $BTC and the broader crypto market. It considers data from sources like social media, online forums, and trading platforms.
JPMorgan's equity research team notes a multi-sigma spike in retail sentiment for $BTC products, including IBIT $BTC ETFs (+3.4z) and COIN (+6z).
However, SoSoValue data shows $BTC ETFs saw the third-highest outflow (over $400M) since their launch in January on November 14. The outflows primarily came from Fidelity's $FBTC and ARK 21Shares' $ARKB ETFs.
Source: SoSo ValueMicroStrategy's MSTR stock investors are also bullish, as evident from the one-year 25-delta put-call skew plummeting to a record low of -26.7% on Wednesday.
This means that investors were paying a significantly higher premium for call options (bets on the stock price rising) than put options (bets on the stock price falling).
It's worth noting that a correction usually follows record highs. Unless $BTC continues its parabolic upward trend, MSTR price is likely to pull back by some degree.
More Green Dots for MicroStrategyOn Sunday, Michael Saylor posted a screenshot of MicroStrategy's portfolio tracker and said it needs more green dots,' which indicate $BTC purchases.
Michael Saylor is a known $BTC maximalist, so his hinting at a new investment isn't surprising. Last time Saylor made a similar statement, MicroStrategy bought $2B worth of $BTC, bringing its portfolio to $23B.
The firm aspires to raise $42B by 2027 through shares and convertible debt to fund future $BTC investments. The ultimate goal is to become the leading $BTC bank worldwide.
Following in MicroStrategy's footsteps, Tokyo-listed investment firm Metaplanet announced plans to allocate the proceeds from its 1.75B yen (roughly $11.3M) one-year bond issuance, offering a 0.36% annual interest rate, entirely towards $BTC acquisitions. To date, Metaplanet has accumulated over 1K $BTC, worth $92.3M.
In October, Metaplanet adopted $BTC yield,' which measures the percentage change in the total $BTC holdings ratio to fully diluted shares outstanding, as a KPI. By tracking $BTC yield, Metaplanet aims to evaluate the effectiveness of its strategy.
Is a Correction Looming?The CMC Crypto Fear & Greed Index currently stands at 83. Despite $BTC's strong performance, for risk-averse investors, such a high value is a concerning sign.
Is the market overheated and due for a correction, or will the frenzy continue?
We'll have to wait and see.
SourcesClick to expand and view sources- US Spot BTC ETF (SoSoValue)
- Michael Saylor (X)
- Metaplanet Inc. (X)
- MicroStrategy Inc. (MarketWatch)
- MSTR (MarketWatch)
The post JPMorgan's $BTC Sentiment Score Soars, MicroStrategy to Beef Up Its Stash appeared first on Techreport.