Bitcoin BTC Price May See Price Turbulence as $30,000 Tested

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Good morning. Here is what happens:

Price: As Asian trading begins, bitcoin holds above $30,000 despite slight decline, while Ether trades lower

Insights: For investors and others touching the tech world, AI is the latest shiny thing. Is their fascination premature?

As Asia opens up for trading, bitcoin still topped the $30,000 mark at $30,323, flat for the past 24 hours, according to data from CoinDesk. Ether, meanwhile, is trading at $1,860, down 1.3%.

Shaun Fernando, chief risk officer at Deribit, told CoinDesk in a note that bitcoin’s peak pain point, or part of the market when option holders will suffer the most financial losses, while option sellers may be the biggest takers, is currently at $26,000, which should ease some of the downward pressure on prices after the next options expiration.

With impressive open interest of over $350 million at the $30,000 strike, the approaching quarterly expiry promises an exhilarating conclusion, bearing the potential for price turbulence amid various gamma hedging strategies, has Fernando said.

Fernando noted that ether has seen significant institutional selling activity, but its implied volatility remains lower than bitcoin.

AI hype doesn’t reflect reality

Critics of the digital asset industry say it is loaded with buzzwords and unsustainable, always chasing the next new trend without much concern for its sustainability.

And for the most part, they’re right.

Over the weekend, 8btc, one of China’s premier crypto publications, announced that it was dropping the domain entirely and pivoting to primarily cover AI and the metaverse.

Venture capitalists, apparently bored with blockchain and crypto, have found new interest in AI. Data from PitchBook shows that venture capital funding for crypto decreased by 80% in the first quarter of 2023, from $12.3 billion to $2.4 billion. Data from PitchBooks also shows that AI startups raised $1.6 billion this quarter, and another $10 billion in deals have been announced but not yet closed.

Certainly, there are similarities between AI hype cycles and enterprise blockchain.

Even at the height of blockchain mania, a prelude to the Covid bull market, there was not the same fervor as with AI. You would think that given the disappointment of the bursting of the enterprise blockchain bubble, stakeholders would have learned their lesson about enthusiastically adopting new technologies.

Robinhood is ending support for Polygon, Cardano and Solana

BitGo CEO Mike Belshe has joined ‘First Mover’ to explain why the custodian has halted its acquisition of rival Prime Trust after reaching a preliminary agreement earlier this month to acquire the company for a fee. not disclosed. Meanwhile, bitcoin (BTC) got off to a strong start this week, with the world’s largest digital asset holding above the $30,000 mark. Katie Talati, Head of Research at Arca, shared her analysis of the crypto markets. And Steve Hanke, professor of applied economics at Johns Hopkins University and senior fellow at the Independent Institute, shared his thoughts on current macro factors impacting crypto, after Russia briefly faced the threat of an armed insurrection over the weekend.

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