Home / Business / Market Summary: Bitcoin Moves to $35K, ETH to $2.4K on Biden, Environmental Recession

Market Summary: Bitcoin Moves to $35K, ETH to $2.4K on Biden, Environmental Recession

The bearish news drives the crypto market down and uncertainty reigns as the price rises again.

  • Bitcoin (BTC) is trading at around $35,889 as of 21:00 UTC (4 pm ET), down 7.6% over the past 24 hours.
  • Bitcoin 24 Hours: $35,453-$39,053 (CoinDesk 20)
  • Ether (ETH) is trading at $2,506 as of 21:00 UTC (4 pm ET) in red 9.3% over the past 24 hours.
  • Ether’s 24-Hour Range: $2,443-$2,784 (CoinDesk 20)

Bitcoin left with suspicion

Bitcoin hourly price chart on Bitstamp since May 25th.
Source: TradingView

Bitcoin, the world’s largest cryptocurrency by market cap. It was down 7.6% on Friday. At the current time, BTC is below the 10-hour and 50-hour moving averages, a bearish signal for market technicians.

The price of BTC dropped from $39,053 at 10:30 UTC (18:30 pm ET) on Thursday to as low as $35,453 by 12:00 UTC (8:00 a.m. ET) on Friday, down 9.2%, according to the data. of CoinDesk 20

Fundamental crypto market uncertainty includes uncertainty about bitcoin as a hedge against inflation. After US President Joe Biden issued a $6 trillion budget plan. This included ongoing concerns about environmentally damaging bitcoin mining that likely led to Friday’s sale.

“It can be a tough weekend for crypto investors,” said David Russell, vice president of market intelligence at brokerage TradeStation Group. “The mid-May selloff left some technical scars that could take time. To keep Bitcoin under $40,000 and drag it into space.”

On May 23, bitcoin dropped to a one-month low of $33,140, ​​according to CoinDesk 20.

bitcoin price historical past month
Source: CoinDesk 20

Read more: Bitcoin is in correction below $40,000; More disadvantages are expected.

BTC Calls Raised at $100K

Bitcoin options open interest based on strike price
Source: Derib

In the bitcoin derivatives market, the top spot in the bellwether option Deribit, at $100,000 hit, looks a bit far from here. Deribit data shows that more than 8,000 calls with an estimated value of $305 million were at the six-figure strike.

“You can see that there are even $400,000 protests, which are ridiculous,” said Nathan Cox, chief investment officer at crypto fund Two Prime.

Going deeper, the Genesis Volatility aggregator provides implied volatility indicators based on expiration deribit data. For example, it expires on June 11th. Skewness will be down This is evident in the large amount of implied volatility aimed at the $20,000 strike price.

The bitcoin options slop expires on June 11th.
Source: Genesis Volatility

However, looking deeper into the future Implied volatility causes a bullish market at $400,000 on March 23, 2022, expires.

The bitcoin options slop will expire on March 25, 2022.
Source: Genesis Volatility

It is a short term downtrend. But the long-term hyper bull mode is for options traders according to Cox and he believes there could be more downsides before the reversal.

“So, yes, we all believe in the macro case of bitcoin,” Cox told CoinDesk, “but the question is, how are you going to trade it now? And the answer might be a little more subtle than most people think, which is, hold on because we’re not done yet.”

Ether volume over bitcoin for third day in a row

Hourly price chart of Ether on Bitstamp since May 25.
Source: TradingView

The second largest cryptocurrency by market cap, ether, was trading at around $2,506 as of 9:00 p.m. UTC (4 a.m. ET), down 9.3% over the previous 24 hours. The asset is below the 10-hour moving average, but above the 50-hour sideways signal for market technicians.

Ether dropped from $2,784 at 10 p.m. UTC (18:00 pm ET) on Thursday to $2,443 by 12:00 UTC (8:00 a.m. ET) on Friday, an 8.2% data transfer, according to CoinDesk 20. ETH has gone up and down, but up $2,506 at press time.

Spot ether volume was higher than bitcoin for the third day in a row on Thursday. Based on the latest data from CoinDesk Research, BTC was valued at $40 million Thursday, 8% below Ether’s $44 million trading volume, a sign that traders are still looking for highly liquid crypto opportunities aside. from bitcoin

Bitcoin and Ether Volume on Major Exchanges
Source: CoinGecko

While this development may be relevant to bitcoin holders in the long run, Nick Mancini, a research analyst at signal firm Trade the Chain, points out that BTC’s dominance, or its share of the ecosystem, is “continuous”. cryptocurrency Overall it was stable – actually up 0.30% due to Friday’s newspaper.

Bitcoin Domination Until May
Source: TradingView

“If bitcoin’s dominance continues to increase, we expect BTC to lead ETH and other large caps,” Mancini said, “and we expect both ETH and BTC sentiment and price movement to be correlated throughout. over the weekend.”

Use case for bitcoin: Ethereum

Various bitcoin tokens on Ethereum as of early 2020
Source: Dune analysis

Over 230,000 BTC at the moment are “wrapped” on Ethereum, a record high. The packets of bitcoin are stored in escrow in custody wallets. And tokens will be generated on the Ethereum network to represent that value and be applied to various decentralized finance or DeFi applications such as lending, trading and derivatives.

At over 184,000 bitcoins, the most popular wrapping project, wBTC, is a joint effort of the BitGo, Kyber Network and Republic protocols, according to the white paper.

Brian Mosoff, Chief Executive Officer of Ether Capital, says encapsulated Bitcoin is breaking records due to the ongoing digital narrative and treasury of BTC. And this particular technology may become of interest to financial incumbents over time.

“This is a new system and piece of software,” Mosoff said. “Seeing communities around the world tackle these issues in a decentralized way. Make the tool more efficient It will lead to a pivotal moment when traditional finance is ready to connect their infrastructure and connect the two worlds.”

Read more: Uniswap Holders Vote for Ethereum Scaler Abitrum

Other markets

All CoinDesk 20 digital assets were lower on Friday. Outstanding loser at 21:00 UTC (4:00 pm ET):

  • Gold is up 0.37% and is $1,903 at press time.

Read more: Sweden’s central bank tests digital currency against Handelsbanken

  • The 10-year U.S. Treasury yield fell 1.591 on Friday and was down 1 percent.

CoinDesk 20: The Most Marketable Asset

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