With bitcoin falling for more than a week, cryptocurrency experts are keeping an eye on a potential sharp drop in the value of BTC, as indicated by recent moves in the options market. At the time of publication, the price of BTC was quoted at US$62,967.07 with a drop of 4% in the last 24 hours. The global crypto market capitalization is $2.4 trillion, down 3.79% in the last day.
Cryptocurrency options platform Deribit reported a predominance of put options over call options, pointing to a climate of caution among investors. This imbalance suggests preparation for a possible devaluation of the cryptocurrency, with strike prices mostly concentrated below the US$50,000 mark.
Even more, the scenario is corroborated by the observation of David Lawant, from the crypto brokerage FalconX, who mentioned a significant movement of funds out of the Grayscale Bitcoin Trust (GBTC), negatively impacting the price of Bitcoin. This trend marks an intriguing contrast to the recent stock market rally, which has demonstrated a more optimistic stance due to expectations of interest rate cuts by the Federal Reserve.
The leading cryptocurrency, which recently slid more than 10% from its peak, faces additional pressure with the liquidation of more than $218 million in bullish positions. Chris Newhouse of Cumberland Labs has observed a decrease in the correlation between digital assets and the stock market, attributing part of this change to recent outflows and liquidations.
Despite the prevailing bearish atmosphere, the perpetual futures market indicates relatively modest leverage, suggesting that the current price correction may not be as severe as previous episodes. However, high leverage on long positions precipitated a sharp decline, with significant liquidations recorded earlier this week.
In contrast to the immediate sentiment, some analysts maintain an optimistic view for Bitcoin’s future. A report from Bernstein points to significant recovery potential, with a projected price target of $90,000 by the end of the year. Additionally, Bitcoin mining emerges as a promising sector, attracting the attention of investors looking for opportunities in the stock market, given projections of a new bull cycle for the cryptocurrency and solid inflows into ETFs.
Disclaimer:
The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.
Source: https://portalcripto.com.br/preco-do-bitcoin-pode-cair-abaixo-de-us-50-000-alertam-traders/
