Why is Crypto Market Down Today?
The post Why is Crypto Market Down Today? appeared first on Coinpedia Fintech News
Bitcoin (BTC) dropped below $63,000, marking a 1.4% decline over the past 24 hours, as traders locked in profits following a recent rally. Despite increasing spot prices, implied volatility for BTC and ETH has shifted towards put options rather than calls until October. This surprising trend suggests the market may have already priced in the recent rise and is now quickly cashing in by selling call options.
Broader Crypto Market Sees Declines
The dip in Bitcoin triggered a broader downturn across the crypto market, with major cryptocurrencies like Ether (ETH), BNB, Cardano (ADA), and XRP also facing losses. Memecoin Dogecoin (DOGE) led the declines with a 4% drop, while Ton Network’s TON suffered a significant 20% loss over the week, influenced by the arrest of Telegram’s CEO.
Volatility and Market Hesitation
While Bitcoin’s price trend is clear, the sudden volatility reflects market hesitation. With short-term option volatility on the decline, BTC’s spot price is expected to fluctuate within the $62,000 to $67,000 range in the near term. However, upcoming events, such as NVIDIA’s earnings report on August 28 and U.S. Personal Consumption Expenditures (PCE) data on August 30, are expected to bring no major surprises.
QCP Capital’s Strategy: Bullish But Cautious
Despite the overall market correction, QCP Capital, a Singapore-based trading desk, noted an increase in call spread buying, signaling a generally bullish sentiment among traders. However, this strategy suggests that while optimism remains, a significant price surge in the near term is unlikely. Traders focus on call options at the $100,000 level for Bitcoin, indicating cautious optimism without expecting a dramatic rise.
Also Check Out: Bitcoin ETFs Witness Huge Inflows With BlackRock Holding Over 3000 BTC, Then Why is the BTC Price Stuck Within a Range?
Welcome to Billionaire Club Co LLC, your gateway to a brand-new social media experience! Sign up today and dive into over 10,000 fresh daily articles and videos curated just for your enjoyment. Enjoy the ad free experience, unlimited content interactions, and get that coveted blue check verification—all for just $1 a month!
Account Frozen
Your account is frozen. You can still view content but cannot interact with it.
Please go to your settings to update your account status.
Open Profile Settings