Bitcoin isn’t the king of cryptocurrency for nothing. Most major cryptocurrencies have dipped incredibly low on Saturday, and that includes Bitcoin (BTC) but it doesn’t seem to budge.
Bitcoin trades at $39510 on Friday. That’s a decrease of 4% based upon charts from Coingecko. It signals trouble in trading. With this trend, traders have suffered huge losses in equity.
It’s a consolation though that right now Bitcoin and other cryptocurrencies are frequently linked to stocks in terms of volatility in interest rates and market values.
Metaverse Tokens On Overdrive, Outpace Bitcoin And Ethereum| Metaverse Tokens On Overdrive, Outpace Bitcoin And Ethereum
Bitcoin’s Big 4% Drop
Although four percent may seem insignificant, it is significant for Bitcoin and other cryptocurrency. Investors and traders have become more aware of the dangers and decided to sit back and wait and watch the market rather than taking huge losses.
But, if you don’t act quickly enough it can lead to market losses.
Altcoins fell even more than Bitcoin. Basicly, altcoins are more likely to fail than Bitcoin when they are compared to other cryptocurrency. BTC is a better choice because of its higher risk profile.
Bitcoin is Stable Despite a Dip
A more encouraging note is that technical indicators indicate that Bitcoin, despite its lower price momentum, will remain stable at $38,500. Options traders are constantly on the alert for sudden price spikes so it may be difficult for them to make a profit from the BTC downtrend.
BTC Total Market Cap at $755. On the weekend chart: $2.5 billion| Source: TradingView.com
Move Over Bitcoin – Is Shiba Inu The Next Crypto Gold?| Move Over Bitcoin – Is Shiba Inu The Next Crypto Gold?
The current trends in the metaverse and crypto worlds could have a significant impact on how traders act. Arthur Hayes (BitMEX founder) stated there was an imminent BTC price crash with a target of $30,000 and traders responded by selling their BTC.
This caused traders to sell their May and June option calls like crazy causing the risk reversals to drop from -6% to about -10% for both Bitcoin and Ethereum.
Still A Bullish Trend
With Bitcoin’s lowest low registering the past couple of days, this also highlights the minimized bearish sentiment on the side of options traders. It is not unusual for traders to be cautious at this time.
Global cryptocurrency trading activity has been reduced to $1.88, with only very small gains in the past 24 hours. Nevertheless, trading volumes rose by around 18%.
Although the strict monetary policy has had a negative impact on speculative assets such as stocks and cryptocurrencies, indicators show it will remain bullish for at least a while.
Featured image taken from EPA EFE chart, TradingView.com