Helena Lyng Blak
37 weeks ago

Volatility Returning to the Crypto Market?

Financial analyst “anticipates increased volatility in the coming weeks”.
Cryptocurrency on Binance trading app, Bitcoin BTC with BNB, Ethereum, Dogecoin, Cardano, Litecoin, altcoin digital coin crypto currency defi p2p decentralized finance and fintech banking market
Chinnapong / Shutterstock.com

The crypto market has in recent weeks been uncharacteristically steady, according to cryptocurrency analyst Mads Eberhardt at Steno Research.

Yet the expert expects that will soon change with the crypto market seeing an increase in volatility, primarily marked by an overall upward trend.

“Over the past week, we have seen a positive turn in the net flow of Bitcoin spot ETFs although it has not reached the heights seen in early March,” says Eberhardt. “Coupled with decreasing exchange balances, these signs suggest a positive trend.”

On the other hand, however, an observed recent rise in the futures market's interest in Bitcoin and Ethereum, especially with Ethereum reaching a new peak last week, makes Eberhardt cautious. But he still thinks the market might go up, although this trend suggests a more volatile near future for cryptocurrency.

“The market correction that occurred a few weeks ago effectively cleared out significant excess leverage, leading to a notable reduction in open interest, particularly in Bitcoin and Ethereum futures. Remarkably, within just a few weeks, open interest rebounded to its pre-correction levels,” Eberhardt highlights.

“This resurgence is largely fueled by speculation on the long side, as evidenced by the shift in the funding rate towards even more positive territory. This indicates that investors holding long positions are prepared to pay a substantial premium to those on the short side to keep their positions open.”

Disclaimer

The information provided by this Site is for general informational purposes only. All information on the Site is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information on the Site.

More News

26 weeks ago Analysis: New Debate Rules Favor Biden New rules announced for the June 27th debate between Joe Biden and Donald Trump serves the President well.
26 weeks ago StanChart Becomes Among the First Global Banks to Launch Spot Crypto Trading StanChart breaks new ground by launching spot trading for Bitcoin and Ether, leading the charge among global banks in the cryptocurrency space.
26 weeks ago Crypto, Currently: June 21, 2024 - Market Bears Down on Major Cryptos Daily update on the five cryptocurrencies, we consider the most interesting right now.
1 minute ago FX Daily: June 21, 2024 – Forex Market Update Daily update from the foreign exchange markets.
26 weeks ago Amazon Plans To Make Largest Reduction of Plastic Packaging in North America To Date Amazon's response to mounting criticism over its plastic waste with a new reduction plan.
26 weeks ago Ex-OpenAI Chief Scientist Ilya Sutskever Launches New Company Amid Criticism of ChatGPT Parent's Board Appointments Ilya Sutskever, former chief scientist at OpenAI, has co-founded a new company, Safe Superintelligence Inc., amidst ongoing scrutiny of OpenAI’s recent board appointments.
26 weeks ago FX Daily: June 20, 2024 - Mixed Movements in Global Currency Markets Daily update from the foreign exchange markets.