[ad_1]
Bitcoin is spinning amid the rally in global equity markets as ether options traders increase interest as the Ethereum network moves towards an ambitious upgrade.
- Bitcoin (BTC) traded around $ 15,384 at 21:00 UTC (16:00 ET). Gain of 0.05% in the previous 24 hours.
- Bitcoin 24 Hour Range: $ 14,845- $ 15,842
- BTC above its 10 and 50 day moving average, a bullish sign for market technicians.
After bitcoin made over $ 200 on news that Pfizer’s vaccine trial showed it was 90% effective in preventing coronavirus infections, the price plunged nearly $ 1,000 within hours on Monday. The sell-off went from $ 15,842 shortly after Pfizer’s early morning announcement to $ 14,845 around 4:30 PM UTC (8:30 AM ET). It has since recovered, changing hands at $ 15,389 at press time, according to data from CoinDesk 20.
“Bitcoin’s retracement through the $ 15,000 level is a continuation of the gradual downward movement in the past few days,” said Guy Hirsch, chief executive for the US at multi-asset brokerage eToro. “Although today it looks different from the likely profit taking that occurred over the weekend.”
Cindy Leow, portfolio manager for multi-strategy cryptocurrency firm 256 Capital Partners, has been tracking bitcoin’s volume-weighted average price, or VWAP, as an indicator as prices take a break from a rally that led to the World’s oldest cryptocurrency to record 2020 highs Last week. VWAP provides an average price at which an asset traded during the day based on both volume and price.
Read more: Bitcoin’s weekly close above 2019 leaves the track clear at $ 20K
“In the short term, we are entering bandsaw markets that typically follow huge gains,” Leow noted. “We see immediate support at BTC’s $ 14,700 monthly VWAP, from which BTC has steadily rebounded, indicating that buyers are still in control.”
A change in market dynamics also plays a role in eliminating a possible fall in prices. This is largely due to the waning influence of the BitMEX leveraged derivatives home, which is facing lawsuits and the wrath of US regulators.
“It is fascinating that all of this increase last week from $ 13,900 to $ 15,900 has come with so few long liquidations and very few corrections so far,” Leow said. “We suspect this is largely an effect of trading volumes ranging from BTC margin futures to USDT margin futures, as USDT margin traders are technically in a short BTC position.”
Settlements on BitMEX, as tracked by the Skew data aggregator, are down.
Meanwhile, traditional markets are seeing big action on Monday, the first day of trading since a clear winner in the US presidential election was decided. Former Vice President Joe Biden will take office in early 2021.
Read more: The impact of cryptocurrencies is unclear after Joe Biden defeated Donald Trump
Equities are up in major global indices.
In addition, large moves are taking place in major commodities, with oil rising and gold falling.
- Oil increased by 7%. West Texas Intermediate Crude Oil Barrel Price: $ 40.01.
- Gold was in the red by 4.4% and at $ 1.864 at press time.
Read more: Markets Peak As Coronavirus Vaccine Trial Shows 90% Success Rate
“With the S&P 500 hitting a new all-time high today along with news of a Pfizer COVID vaccine showing strong promise, it will be interesting to see how BTC performs in the coming weeks,” said Daniel Kohler, San Francisco liquidity manager. OKCoin cryptocurrency. “We have seen an increase in BTC and S&P 500 correlations over the past few weeks – with BTC trading at levels not seen since 2017, it will be interesting to see if this trend reverses or we continue to see outperformance.”
In fact, the trend appears to be reversed already, with the correlation dropping last week until Friday’s close.
“Surprisingly, given the recent correlation with equities, bitcoin’s immediate price action has been much more volatile,” added Denis Vinokourov, head of research at crypto brokerage Bequant.
Interest in Ether options at an all-time high
The second largest cryptocurrency by market capitalization, ether (ETH), fell on Monday trading around $ 447 and slipping 1% in 24 hours at 21:00 UTC (16:00 ET).
Open interest for ether options hit a record Sunday at over $ 570 million. The last time open interest approached that level was on September 1, when it was at $ 544 million.
Greg Magadini, chief executive of data aggregator Genesis Volatility, says the progress of the Ethereum network’s move to upgrade to “2.0” has led options traders to bet more and more on the outcome.
“On US election night, we witnessed the silent release of the ETH 2.0 deposit agreement,” Magadini told CoinDesk “As we approached the launch of Phase 0, the excitement triggered an increase in the volume of ETH options traded last year. week”.
Other markets
Digital assets on CoinDesk 20 are all Red Monday. Notable Losers at 21:00 UTC (16:00 ET):
Read more: Crypto Lender credit file for bankruptcy after losing funds to fraud
- Yields on US Treasury bonds rose on Monday. Yields, which move in the opposite direction to price, rose the most on the two-year bond, leaping to 0.179 and in green by 17%.
