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Bitcoin’s price continues to rise, with a little help from the US Federal Reserve, as ether traders are hedging themselves in the options market.
- Bitcoin (BTC) traded around $ 10,979 at 20:00 UTC (16:00 ET). Earning 2% in the previous 24 hours.
- Bitcoin 24 Hour Range: $ 10,662- $ 11,099
- BTC above its 10 and 50 day moving averages, a bullish sign for market technicians.
Bitcoin hit $ 11,099 on exchanges like Coinbase on Wednesday after the U.S. Federal Reserve announced it would keep interest rates close to zero until maximum occupancy is reached. However, the price dropped to $ 10,979 at press time.
Read more: Federal Reserve now aims for inflation above 2%, Bitcoin exceeds $ 11K
“Buyers have already reached $ 11,000 for BTC. We expect a rise to $ 11,200 and then a test of $ 11,500,” said Constantine Kogan, partner of crypto fund BitBull Capital.
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However, at least one stakeholder remains wary until there is more buying volume in the bitcoin market. “Personally I think we need to see a sizeable purchase volume above $ 12,000 to really get this move, otherwise I would tend to expect further consolidation in the coming weeks,” said Neil Van Huis, director of institutional trading at the liquidity provider. Blockfills. The last time bitcoin reached $ 12,000 it returned on September 1st.
Bitcoin mining could play a role in short-term market movements, Van Huis added. “If BTC prices are higher, miners could try to capitalize on them by selling to raise money,” he said. The mining difficulty adjustment, scheduled for September 19, is expected to trend upward as hash power hit record highs this week. This means that older mining machines will be replaced with newer models for some operations to compete.
“Miners would essentially speculate that it would be more profitable to let their bitcoin holdings travel because they can’t have access to equipment, or sell BTC to raise money for equipment to be mined more efficiently in the future,” added Van Huis. .
Italian over-the-counter trader Alessandro Andreotti pointed to the amount of bitcoin stuck in decentralized finance, which crossed the 100,000 BTC mark this week, as a bullish sign for the world’s oldest cryptocurrency. “I think it’s a great milestone for decentralized finance as a whole, showing how much potential it has and how many investors believe in it,” said Andreotti. “These are exciting times.”
Read more: Bakkt Bitcoin Futures daily trading volume hits record high
Ether options bet under $ 400
Ether (ETH), the second largest cryptocurrency by market capitalization, rose Wednesday trading around $ 365 and climbing 0.28% in 24 hours at 20:00 UTC (16:00 ET).
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Ether options traders remain biased towards spot prices below $ 400. While 36% expect ether to exceed $ 380, only 22% of options bets expect ether to exceed $ 400 next week. at the deadline of 25 September.
William Purdy, an options trader and founder of analyst firm PurdyAlerts, said ether’s implied volatility, the prediction of its price movements, was greater than realized volatility, a measure of price movements from past behavior, from July. Since option prices are based on implied volatility, he sees an opportunity in shorting ether options.
“Implied volatility is priced higher than historical volatility, as ether investors are looking for downside price protection from future bad luck,” Purdy said. “This cost of protection is often overestimated by the market and can be exploited by selling options.”
Other markets
Digital assets on CoinDesk 20 are mixed, mostly on Red Wednesday. Notable Winners at 8pm UTC (4pm ET):
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Notable Losers at 20:00 UTC (16:00 ET):
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- Oil increased by 4.4%. West Texas Intermediate Crude Oil Barrel Price: $ 40.09
- Gold was up 0.27% and at $ 1,958 at press time.
Read more: Kraken becomes the first Crypto Exchange to become a US bank
- US Treasury yields were mixed on Wednesday. Yields, which move in the opposite direction to the price, fell more on the two-year bond, in the red by 8%.
Read more: The Bahamas will launch the “sand dollar” digital currency next month
