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Bitcoin fell below $43,000 on Thursday, indicating a slowdown in buying activity.
The price of the cryptocurrency has been nearly flat over the past week, compared to a 3% drop in ether. Price movements among some altcoins have been choppy over the past week, especially for BTC, which may reflect some uncertainty among traders.
“It appears that many have been hedging and reducing exposure to cryptocurrencies in recent weeks in anticipation of [the U.S. consumer price index] Released on Wednesday, which now has to buy back,” Marcus Sotirio, an analyst at UK digital asset broker GlobalBlock, wrote in an email to CoinDesk. However, some buyers have lost business, at least in the 24 hours past.
Regulatory developments may have soured the mood among cryptocurrency traders. On Thursday, local media reported that the government of Pakistan and its central bank want to ban the use of cryptocurrencies. The introduction is the first time the central bank has taken a clear position.
At the moment, Bitcoin is stuck between the $40K support and the $44,000 resistance, according to the technical analysis.
●Bitcoin (BTC): $42712, −2.69%
●Ether (ETH): $3,270, −3.33%
●S&P 500 daily close: $4,659, −1.42%
●Gold: $1,821 per troy ounce, −0.32%
●Daily close of 10-year Treasury yield: 1.71%
Bitcoin, Ether and Gold prices are taken around 4pm New York time. Bitcoin is the CoinDesk Bitcoin (XBX) price index; Ether is the CoinDesk Ether (ETX) price index; Gold is the Comex spot price. Information about CoinDesk indices can be found at coindesk.com/indices.
Mixed feelings among options traders
The Bitcoin options market has a roughly 70% probability that BTC will trade above $35,000 in March, according to crypto data provider Skew. This expectation is in line with the current range of technical support around the $40,000 price level, as long as buyers are able to maintain the momentum in the short term.
Sentiment among options traders appears to be mixed, based on recent order positions.
“A sharp options player who bought 42,000 BTC calls for January started taking profits on those around the $44,000 BTC spot level, naturally creating some resistance there,” cryptocurrency exchange QCP Capital wrote in a Telegram announcement.
“We believe that options activity will increasingly determine immediate movements as the options market continues to grow,” QCP wrote.
The company also noticed a breakout in the front end of the BTC option volatility curve, which was not consistent with the recent price bounce. For now, the drop in volatility suggests that volatile price action can continue, especially given the macroeconomic uncertainty this year, according to QCP.
See bitcoin financing rates
Analysts also monitor the average bitcoin funding rate, or the cost of holding long positions in perpetual futures contracts listed on major exchanges. Funding rates can indicate the level of conviction among traders who are positioned to the upside or downside in price.
“When funding rates are positive (green), traders pay a premium to the counterparty to take the sell side of the trade. When funding rates are negative (red), traders pay the counterparty a premium,” Shaun Farrell, Head of Digital Asset Strategy at FundStrat, wrote in a report. On taking the long side of the trade.
If the current negative reading continues for a few more days, it could indicate that bitcoin sellers will start to exit positions, according to Farrell.
Tour around Altcoin
- Solana led the gains after endorsing Bank of America but quickly retracted: The move came after Bank of America said in a research note that the Solana protocol’s low fees and high transaction speeds made it a “digital asset ecosystem visa”. It could even usurp Ethereum’s current position as a leader among smart contract-enabled blockchains. On the other hand, Visa wants to be a player in crypto as well. It sees itself as a constructive bridge between the world of digital currencies and cryptocurrencies, and even within the world of crypto. Read more here.
- Nearly $150 Million Raised From Major Crypto Investment Firms: Near’s recent surge has brought some of the biggest investors in the space into the fold as the network prepares for a major DeFi push. Su Zhu’s Three Arrows Capital led the $150 million funding process, with participation from major crypto-focused funds including Mechanism Capital, Dragonfly Capital, Andreessen Horowitz (a16z), Jump, Alameda, Zee Prime, and Amber Group, among others. . Read more here.
- The DeFi Alliance became the DAO: DeFi Alliance, the incubator of platforms ranging from Sushi to Olympus DAO, rebranded itself as “Alliance DAO” on Thursday. Cryptocurrency investors, CEOs, NFTs — and even boxer Jake Paul — have backed a “digital start-up nation.” According to Danny Nelson, about 300 contributors have provided funding, according to project founder Imran Khan, ranging from Morgan Piller, founder of the Libra project, to Devin Finzer of OpenSea. Read more here.
Most of the digital assets on CoinDesk finished 20 lower today.
Sector rankings are provided via Digital Asset Classification Standard (DACS)Developed by CoinDesk Indices to provide a reliable, comprehensive and standardized rating system for digital assets. the Queen desk 20 It is a ranking of the largest digital assets by volume on trusted exchanges.