- Bitcoin (BTC) traded around $ 23,310 at 7:00 p.m. UTC (2:00 p.m. ET), sliding 1.3% in the previous 24 hours.
- 24 Hour Range of Bitcoin: $ 22,644.56 – $ 23,672.82 (CoinDesk 20)
- The derivatives market suggests more volatility to come.
- With the sale of XRP, bitcoin’s dominance in the crypto market is increasing.
Just $ 1.2 billion worth of bitcoin changed on the eight exchanges tracked by CoinDesk 20, the lowest level in 10 days.
According to technical analyst Katie Stockton, managing partner at Fairlead Strategies, the relative calm of the holiday season could potentially give way to some dip at the start of the new year.
“Bitcoin is digesting its gains in a phase of consolidation after confirming its breakthrough to new all-time highs with its upward push in the middle of the month,” Stockton said. “The old resistance near $ 19,500 is now the initial support. The overbought conditions did not impact momentum, ”she said, although this is“ perhaps more likely in January, which seems prone to risk-free positioning on other asset classes. “
According to analyst Alex Krüger, traders who borrow to buy bitcoin are also likely to put prices at risk in the not too distant future.
“The crypto market has become extremely leveraged since the $ 20,000 breakout, and implied volatility has increased as traders have reassessed,” Krüger said. “High leverage translates to weaker hands and makes the price vulnerable to large corrections. This is why we have seen such big price movements in both directions ever since. This is normal given these market dynamics. Under such conditions, negative news would have a huge impact on the market. “
A preview of what’s to come – as early as Friday – can also be found in the derivatives market.
“Tomorrow we will see the biggest expiration in Deribit’s history [Dec. 25] as 86,000 options contracts will expire with a notional value of over $ 2 billion, ”said Luuk Strijers, chief commercial officer of Deribit, the world’s largest Bitcoin options exchange. About 35% of all options on the exchange will expire on Friday, leading them to expect some volatility on Christmas Day.
“Peak pain is at a much lower level, perhaps indicating volatility ahead,” Strijers added.
As Deribit defines it, the max pain price is the strike price with the most open interest in the put and call options and the price at which the underlying asset (like bitcoin or the ether) would cause financial loss for the greatest number of option holders upon expiration. .
Thursday also marked the December expiration of bitcoin futures on the CME, with 4,309 contracts changing hands, far less than the previous day’s 13,829.
Read more: SEC gives broker-dealers the power to manage cryptocurrencies
All is certainly not calm, calm, or bright for XRP. Its downward slide continued on Thursday, with the besieged cryptocurrency taking another 16% hit in the past 24 hours. Since Monday, when Ripple Labs CEO Brad Garlinghouse announced that the Securities and Exchange Commission was going to file a lawsuit claiming XRP was a security, the cryptocurrency has lost more than half of its value. Although it is still the third most valuable crypto, according to data from CoinDesk 20, its market cap is now back to $ 26.6 billion, roughly where it was in early November.
In the wake of XRP’s troubles, bitcoin’s share of the total crypto market has increased to nearly 69% from 65% last week, according to data compiled by CoinMarketCap.
Read more: Coinbase, other big ‘rock and hard place’ trade on XRP removal
Ether (ETH), the second largest cryptocurrency by market cap, fell 2.3% on Friday, trading around $ 596 at 7:00 p.m. UTC (2:00 p.m. ET).
For those following decentralized funding, the amount of ether locked in DeFi contacts remains at just under 7.3 million ($ 4.3 billion), according to data site DeFi Pulse.
Read more: Crypto wallet rule proposed by FinCEN could hit DeFi
Digital assets on CoinDesk 20 were mixed, with eight winners and 10 losers on Monday (the other two are stablecoins).
Notable Winners at 7 p.m. UTC (2 p.m. ET):
- stellar (XLM) + 9.8%
- orchid (OXT) + 4.0%
- cardano (ADA) + 4.4%
- omg network (OMG) – 6.7%
- algorand (RAND) – 6.1%
- chain link (LINK) – 5.6%
- Nikkei 225 (Japan) 26668.35 (+143.56 or + 0.54%)
- The FTSE 100 (UK) 6,502.11 (+ 6.36 or + 0.10%)
- The S&P 500 (US) 3,703.06 (+ 13.05 or + 0.35%)
- Oil rose 0.23%. Price per barrel of West Texas Intermediate crude: $ 48.23.
- Gold was in the green 0.27% and at $ 1,883.20 at time of release.
- The yield on 10-year US Treasuries fell 29 bps to end the short week at 0.926%.