Market wrap: Bitcoin stops near $ 50,000 before options expire

[ad_1]

Bitcoin stalled after approaching the resistance level of $ 50,000 on Monday. The cryptocurrency was trading at around $ 49,500 at the time of publication and has risen around 8% over the past week. Analysts expect a period of consolidation ahead of Friday’s options expiration date and news of the Federal Reserve’s annual economic policy symposium in Jackson Hole, Wyo.

The trend is bullish; However, caution should be exercised at these levels due to lower volume as well as resistance in April and May, GlobalBlock trader Marcus Sotiriou wrote in an email to CoinDesk.

$ 51,000 would be a natural place for a short-term break from the rally, wrote Katie Stockton, managing director of Fairlead Strategies, in a Monday newsletter.

The long-term momentum behind bitcoin has strengthened and the 200-day (40-week) moving average is rising again, supporting a long-term bullish outlook, she wrote.

Latest prices

S&P 500: 4,479.5, + 0.85% Gold: $ 1,803, + 0.57% The 10-year Treasury yield closed at 1.251%, up from 1.261% on Friday

Several analysts have noted that the extreme overbought conditions have lifted since April, supporting the crypto rally.

Currently, bitcoin and other cryptos have received technical support (as they were getting slightly oversold), Santiago Espinosa, a strategist at MRB Partners, wrote in an email to CoinDesk. At this point, some cryptos may continue to perform well if policymakers overlook inflationary pressures and regulatory issues don’t become a general issue.

Bitcoin options expiration

About 25% of open interest on bitcoin options expires on Friday. The greatest concentration of open interest is seen at the strike price of $ 50,000, which is also a key technical resistance level.

Despite the easing of implied volatility in recent weeks, $ 50,000 is a significant psychological barrier and the concentration of open interest could prove volatile before expiration, wrote Grégoire Magadini, co-founder and CEO of Genesis Volatility, in a Telegram chat.

According to options data provider Skew, the bitcoin options market has a 45% chance that BTC will trade above $ 50,000 by the end of September.

The chart shows the open interest at various strike prices.

Source: bias

Bloomberg’s McGlone still bullish on bitcoin

Bloomberg Intelligence’s Mike McGlone, who won praise last year for being among the most prominent analysts predicting bitcoin to hit $ 50,000, sees another benefit now that the biggest cryptocurrency has returned to the brand. after a strong market correction.

“Bitcoin, gold and long bonds are the main assets that are expected to outperform” in the second half of 2021, McGlone wrote in a report on Monday. “The first crypto may have solved the age-old problem of a global reserve asset that is easily transportable and tradable, has 24/7 price discovery, is relatively rare, and is neither the responsibility nor the person project. “

BTC holdings are increasing

The percentage of profitable bitcoin addresses (BTC value above cost base) has peaked in three months, according to data from Glassnode.

The decline in losses lately could indicate that investors have regained the conviction to hold on, or potentially take outings closer to their initial cost base, as price recovers towards the $ 50,000 range, Glassnode wrote in a blog post on Monday.

The graph shows the amount of “lost” coins held with a price overlay.

Source: Glassnode

Crypto fund entries

Crypto funds posted $ 21 million in net inflows last week as digital asset markets rallied, bringing total assets under management (AUM) to $ 57.3 billion, the highest level since May , according to a new report.

The latest data reflects a reversal after six straight weeks of cash outflows, according to the report released Monday by digital asset manager CoinShares.

Solanas SOL token-focused funds saw the largest inflow among all digital assets, at $ 7.1 million last week, according to the report. The token hit an all-time high of $ 82 on Saturday, according to Messari.

Investors bought back $ 2.8 million from bitcoin-focused funds last week, the seventh straight week of releases, despite the biggest rise in cryptocurrency prices. The streak matched the streak of exits recorded in early 2018, the report noted. It was just before the crypto winter, when cryptocurrency prices fell and failed to return to all-time highs for over two years.

Crypto funds generated $ 21 million in entries last week, breaking a six-week streak of exits.

Source: CoinShares

Altcoin balance sheet

Visa buys CryptoPunk for $ 150,000: Visa bought CryptoPunk 7610, a female CryptoPunk character for around $ 150,000, stepping into non-fungible tokens (NFTs) as he seeks to learn more about the market in full swing boom. A collection of nine rare CryptoPunks that were among the first 1,000 minted fetched nearly $ 17 million at an auction at Christie’s in May. Cuy Sheffield, head of crypto at Visa, said in a blog post that the main purpose of purchasing Visa is to learn more about the growing market. “We believe NFTs will play an important role in the future of retail, social media, entertainment and commerce,” Sheffield wrote. “To help our customers and partners participate, we need a first-hand understanding of the infrastructure requirements for a global brand to purchase, store and operate an NFT.” Tether starts printing again: Tether, issuer of the world’s largest stablecoin, USDT, has started printing again after a roughly two-month shutdown that sparked concern and speculation among investors. Tether has hit at least 2.3 billion USDT since August 1, bringing the market cap of the tokens to $ 65 billion, a Tether representative told CoinDesk by email. Demand for USDT has rebounded recently, according to Tether and industry experts, as sentiment in the crypto market has turned more positive. It is possible, however, that the demand for USDT is not driven by bitcoin but rather by certain altcoins, such as solana (SOL) and terra (LUNA), whose transaction volumes have increased, according to Noelle Acheson, manager. market analysis at Crypto Prime Broker Genesis Global Trading, which shares common ownership with CoinDesk.USDC to change reserves: the world’s second largest stablecoin, USDC, will be 100% backed by cash and US Treasuries in the short term by September, according to Developer Center, a consortium of crypto exchange Coinbase and payment technology company Circle. Circle revealed last month that only 61% of tokens were backed by “cash and cash equivalents,” referring to cash and money market funds. Center will ensure that USDC investments return to a more conservative investment profile by the end of September, wrote Emilie Choi, president and chief operating officer at Coinbase, in a tweet. The attacker who hacked more than $ 600 million from the China-based Poly Network platform has released the private key for the remaining $ 141 million of the stolen cryptocurrency. In a note to the Poly Network team, the attacker (s) called the saga “one of the craziest adventures of our lives”. Poly Network then tweeted its thanks to the attacker (s), posting a link to a transaction on the Ethereum blockchain confirming that the key worked.

Relevant news:

Other markets

Most digital assets on CoinDesk 20 ended up increasing on Monday.

Notable 9:00 p.m. UTC (4:00 p.m. ET) winners:

[ad_2]