The largest cryptocurrency, Bitcoin, recently experienced a significant 10% decrease in its price, dropping from its peak to $65,500. This decline in value helped to stabilize the market volatility as investors awaited the expiration of Bitcoin options.
Key Information in the Bitcoin Market
As per data from Greeks.Live, Bitcoin's Dvol fell below 70%, indicating a downward trend in implied volatility observed in past months. Notable block trade activities revealed a decrease, with large investors buying put options following the Bitcoin halving. The impending expiration of 18,000 BTC options, valued at $1.2 billion with a put-call ratio of 0.64 at a $68,000 strike price, is closely monitored.
This week demonstrated a general weakness in the crypto market, marked by increased selling and reduced implied volatilities in major terms. While Bitcoin has received support post-halving, other cryptocurrencies are facing a short-term bearish trend. ETF premium absorption by the market has led to a recent slowdown in ETF inflows.
Status of Bitcoin ETFs
Bitcoin ETF market entries decreased, with daily net inflows remaining around $100 million. GBTC reported its lowest monthly outflows while inflows into BlackRock’s IBIT and Fidelity’s FBTC are decreasing. On a recent Thursday, total Bitcoin ETF inflow was $106 million, with $144 million flowing into BlackRock’s IBIT and a $79 million outflow from GBTC.
Significant inflows into spot Bitcoin ETFs over the past months contributed to Bitcoin’s price rise to $73,500. Bloomberg ETF strategist Eric Balchunas noted that most of Bitcoin’s 40% gain post-ETF launch occurred after trading hours, resulting in notable price variations between closing and opening prices.
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