Bitcoin Reclaims $40K On Bargain Buying
By Laxmikant Khanvilkar
Virtual digital assets (VDA) are in a recovery mode this morning Asia trade as the consolidation phase observed in recent times presented a perfect bargain buying opportunity for deep pocket investors.
Bitcoin, the world’s largest cryptocurrency by market capitalisation, reclaimed $40,000 mark after having sunk below the $39,000 level in the previous session. The grand old cryptocurrency lost nearly 20% on its peak following the listing of the first spot bitcoin ETFs in the U.S. two weeks ago. It was recently changing hands 0.10% up at $40,104.
Analysts believe that the selling pressure partly triggered by unwinding their positions in the Grayscale Bitcoin Trust GBTC, which in January converted from a close-ended trust to an ETF, to double their profits. One being the negative 40% conversion rate to become zero, and the other being the significant price increase of bitcoin over the last year.
Ethereum (ETH), the second largest cryptocurrency, continues to trade lower. It recently traded at $2,229 losing 0.9%.
Meanwhile, broader markets gained ground led by Solana’s SOL and Avalanche’s AVAX.
The global crypto market cap increased 0.61% to $1.56 trillion in the last 24 hours. On the other hand, the total crypto market volume slipped 26.7% to $52.9 billion. Total volume in DeFi is currently $4.3 billion, and all stablecoins are $48.4 billion, representing 8.1% and 91.4%, respectively, of the total crypto market 24-hour volume. Bitcoin’s dominance is currently 50.3%, showing a decrease of 0.11% over the day.
The IC15 index, the barometer of the top fifteen tokens, edged up 0.3% to 51,680.
Meanwhile, the notional open interest, or the dollar value locked in the number of active bitcoin futures contracts on the Chicago Mercantile Exchange, has dropped by nearly $1.5 billion in last two weeks due to long unwinding and entities using ProShares Bitcoin Strategy ETF (BITO)/CME futures as a liquidity bridging vehicle. It is assumed that the ETF participants may have bought bitcoin before the spot bitcoin ETF launch while simultaneously selling CME futures or BITO to hedge their risks.
You need to login in order to Like
