With the biggest cryptocurrency by market capitalization trading at around $29,207 as Asia’s markets started on Thursday, Bitcoin’s wild 24-hour journey seemed to have stabilized. This price was an almost flat change, returning the digital asset within the limited $500 band that it has been mostly trading within since the end of July.
Notably, investors didn’t seem to care about recent macroeconomic and industry-specific developments that had first pushed the price of BTC beyond $30,000 on Wednesday. Among these were rumors that Fitch had downgraded U.S. Treasury bonds and MicroStrategy’s declaration that it would be buying more bitcoin. BTC’s price, however, eventually fell below $29,000 as a result of news allegations from the news website Semafor that Binance would be charged with a crime at the federal level.
Sei Labs co-founder Jeff Feng emphasized how recent news stories, such as several requests for spot bitcoin and ether ETFs, had an impact on the gyrations in the cryptocurrency market. He noted that these modifications may eventually result in more significant pricing changes. Corporate investments, legislative developments, macroeconomic changes, and the impending Bitcoin price halving event, according to Feng, are significant variables influencing market behavior.
The second-largest cryptocurrency by market value, Ether (ETH), stayed largely constant over the previous 24 hours at roughly $1,842, while Bitcoin stabilized. Other significant cryptocurrencies, such BCH (Bitcoin Cash) and UNI (Uniswap’s token), suffered losses, falling more than 6% and 5%, respectively, a day after the general market witnessed a recovery.
Despite a recent halving event that decreased mining payouts and limited the issue of tokens, Litecoin (LTC) fell by roughly 6%. The token has fallen 22% after reaching its annual high one month ago.
The CoinDesk Market Index (CMI), which tracks the overall performance of the cryptocurrency market, showed a 0.5% decline overall, ranging between negative and positive values.
Deribit Volatility Index (DVOL) volatility levels for BTC and ETH reached “unprecedentedly low levels.” The chief commercial officer of the cryptocurrency derivatives exchange Deribit, Luuk Strijers, made a rare observation that ether’s DVOL was sometimes trading below bitcoin’s DVOL, presumably due to the activities of a single significant trader. Strijers did note that the market expects a large increase in volatility, brought on by things like the impending decision about the Blackrock spot ETF and the forthcoming Bitcoin Halvening. These expectations were indicated by the term structure’s notable steepness and persistent call skew.
Investors and market players are recommended to maintain knowledge and vigilance as the crypto market continues to be impacted by a variety of variables. These periods that seem to be range-bound may really be the start of more significant market swings.