VanEck Research Head: BTC derivatives protection demand hits the 99th percentile, releasing a contrarian long setup signal

Gate News message, April 5, VanEck research director Matthew Sigel posted an analysis on the X platform stating that current protective demand in the Bitcoin derivatives market has risen to the 99th percentile in history, which is typically seen as an “inverse long” signal under extreme risk-off sentiment, and he judged that the market at its current stage is suitable for establishing long positions. The VanEck Digital Transformation ETF (NODE), which Matthew Sigel also manages, has gained 27% since its inception, while Bitcoin has declined 33% over the same period; through diversified allocation and a focus on profitable segments, it has achieved a lower-volatility performance. However, he also warned that if large capital expenditures by companies in the artificial intelligence (AI) space fail to generate corresponding returns, they could pose substantial pressure on the market, especially in a backdrop where weights are concentrated in constituents of the S&P 500 index (the U.S. stock market benchmark index). Note: Percentiles are a statistical position concept; the 99th percentile represents a relatively extreme degree, while the 50th percentile represents the horizontal median.