Cryptoquant CEO Ki Young Ju sees the issue as largely resolved now. As a result, “I think it’s a bullish signal in terms of market sentiment and regulation,” he added.

Since the settlement was announced, there has already been a slight shift in sentiment among traders, Ju said, leading some who were short—betting that the price would go down—to go long. Ju said this is showing up in Cryptoquant’s Taker Buy Sell Ratio, which compares the alternative positions.

Looking at long and short positions
Futures traders switched to long positions after the news broke. Image: Cryptoquant.

Bitcoin fell as low as $44,800 when the Bitfinex/Tether news broke, but its price has since rebounded to the $48,000 mark. This suggests that the market has, at the very least, not been turned off by the settlement.

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