Takeaways from the conference:
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Bitcoin whales converting billions into Ether show a waning confidence in Bitcoin, which is valued at $108,000.
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Bitcoin derivatives have increased liquidation risk with leveraged longs worth $390 Million at risk of falling below $107,000.
BitcoinBTC) has traded within a narrow 2.3% range since the sharp decline from $112,500 on Friday. It is possible that the lack of movement can be partly attributed to the fact that regulated US markets were closed on Labor Day. But Bitcoin derivatives market indicate an increasing lack of confidence towards the $108,000 resistance level.
Bitcoin’s monthly futures premium is currently at 7%. This puts it in the neutral range of 5%- 10% and has remained flat from the week before. Last time the indicator showed bullish signs was on August 24, after the rise to $117,000 following US Federal Reserve Chairman Jerome Powell’s speech Hopes for a less restricting monetary policy were raised.
Bitcoin prices decouple from gold due to whale-selling pressure
Price of gold is up 2.1% from Friday. This has worsened the mood among Bitcoin traders, as Bitcoin’s value fell 12.5% since its all-time peak on August 14. Investors question whether this recent drop is due to a generalized risk aversion trend or to Bitcoin-specific factors, especially after some longtime Bitcoin owners decided to sell a portion of their position.
The Bitcoin whale, who held the funds for over five years before, began to move his money into Ether.ETHOn August 21, selling $4 billion worth Hyperliquid, a decentralized Bitcoin exchange. This movement is a highlight of a “rotation” Nicolai Seidgaard, a researcher at the crypto intelligence platform Nansen, says altcoins seem to be benefiting from increasing corporate accumulation.
Deribit’s skew indicator shows that Bitcoin call options (buying) trade at a 7 percent premium to put options (selling). The indicator is above the neutral threshold of 6% for the last week. This kind of imbalance occurs in markets that are bearish. Market makers and whales show little faith that $108,000 as a support level is going to hold.
You can also find out more about the following: $127 million net outflows US Bitcoin Exchange-Traded Funds’ performance on Friday is another indicator of the discontent felt by holders. BTC derivatives indicate that traders are growing more concerned about the current sell-off, regardless of whether it is due to a broader macroeconomic instability or Bitcoin specific weakness. The yields of 20-year UK government bonds have risen to the highest level since 1998.
Related: Is Warren Buffett’s growing cash pile a bad sign for stocks and Bitcoin?
Investors demand higher yields for holding government bonds. This is a sign that they expect either a stronger inflation rate or deterioration of the domestic currency. Rising long-term rates increase the cost of financing future debt rollovers or new issuance. Even speculation about such risks can further stress national finances, and could potentially spread into the Eurozone. ongoing fiscal concerns.
CoinGlass estimates that $390 million of bullish leveraged position will liquidate if Bitcoin drops below $107,000. estimates. Bitcoin’s near-term prospects will still be influenced by Friday’s US employment market statistics. An increase in the unemployment rate could boost asset prices, since it will put more pressure on Federal Reserve to cut interest rates.
The article does not provide legal advice or investment recommendations and it is intended for informational purposes only. These are solely the opinions, views, and thoughts of the author and may not reflect the opinions and views of Cointelegraph.
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Source: cointelegraph.com
