Latest Prices
- CoinDesk 20 Index: 2,075.25 +1.1%
- Bitcoin (BTC): $63,851.97 +0.27%
- Ether (ETH): $2,632.97 +0.62%
- S&P 500: 5,762.48 +0.42%
- Gold: $2,648.98 +0.52%
- Nikkei 225: 38,651.97 +1.93%
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The crypto markets experienced a subdued start to the Asia trading day due to public holidays in China, Hong Kong, and South Korea. The absence of significant market-moving events from these countries meant that price movements were relatively flat.
- Bitcoin’s Price Movement: Trading around $63,900, an increase of approximately 0.5% in the last 24 hours.
- Ether’s Price Movement: Rose just over 1% to $2,635.
- Digital Asset Market Gains: The wider digital asset market gained 0.2%, according to the CoinDesk 20 Index.
Impact of Public Holidays
The public holidays in China, Hong Kong, and South Korea resulted in a muted trading environment for cryptocurrencies. These holidays included:
- China’s National Holiday (Golden Week): A week-long affair in mainland China and one day in Hong Kong.
- Armed Forces Day: Introduced this year and observed in South Korea.
Bullish Bets on Bitcoin
Traders have locked in almost $1 billion in bullish bets of bitcoin reaching $100,000 on derivatives exchange Deribit. The dollar value of the number of active call options contracts at the $100,000 strike price was over $993 million, the highest among all other BTC options listed on the exchange.
Open Interest and Bullish Sentiment
The second most popular option was the $70,000 call, boasting an open interest of over $800 million. Wintermute noted that ‘the highest open interest across all expirations appears at $100K and $70K for bitcoin, which some market participants interpret as supporting the bullish sentiment that seems to be pervading the market.’
Digital Assets Outperforming Stock Market
The digital assets sector continues to outperform the stock market this year. According to Canaccord, a broker, ‘bitcoin finished the last quarter up around 140% year-on-year, outperforming ether which gained about 60% and the S&P 500 stock index, which rose almost 30%, over the same period.’
Historical Patterns and Potential Rally
If bitcoin follows historical patterns, it tends to rally 6-12 months following the halving and reach new highs 2-6 months later. This could mean a potential rally starting between now and April.
Bitcoin Reacting Positively to Lower-Rate Environment
Bitcoin is still performing like other risk assets for now and reacting positively to the ‘lower-rate environment.’ Analysts led by Michael Graham wrote that this trend is likely to continue in the coming months.
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