Opinion: Protective demand in the Bitcoin derivatives market has reached historical extremes, signaling a contrarian bullish stance.

Matthew Sigel, Head of Research at VanEck, analyzed on the X platform that the current protective demand in the Bitcoin derivatives market has risen to the 99th percentile historically, which is generally seen as a "contrarian long signal" in an extremely risk-averse market, and he judged that the market is currently suitable for establishing long positions. Sigel also manages the VanEck Digital Transformation ETF (NODE), which has risen 27% since its inception, while Bitcoin has fallen 33% over the same period, achieving lower volatility through diversified allocation and focusing on profitable sectors. However, he also warned that the huge capital expenditures by companies in the field of artificial intelligence (AI) could put substantial pressure on the market if they do not generate corresponding returns, especially given the heavy weighting of S&P 500 constituent stocks. Note: Percentile is a statistical position concept; the 99th percentile is a relatively extreme level, and the 50th percentile represents the median.