Monat: April 2023

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Why did bitcoin mining stocks end down on Monday?

  • Bitcoin mining stocks declined in line with the bitcoin price today.
  • U.S. dollar strength pushed BTC under $30,000 again on Monday.
  • DXY climbed today on the back of Empire State Manufacturing data.

Shares of the bitcoin mining companies ended down on Monday as “BTC” – the asset they mine and hold returned to the sub $30,000 level again.

Why did the bitcoin price slip today?

One of the primary reasons behind weakness in the bitcoin price today was the U.S. Dollar Index that moved to the upside. BTC tends to be inversely related to the USD since it was created as a substitute for fiat currencies.

That leaves us to wonder why did the U.S. dollar gain strength on Monday in the first place? The answer lies in Empire State Manufacturing data that confirmed factory activity in New York clawed back in April for the first time since late last year.

A few of the notable bitcoin mining stocks that closed in the red today include Riot Platforms, Bitfarms, and Hut 8 Mining Corp.

Is bitcoin still in a bear market?

Now, let’s look at it in another way. Simply put, the monthly business activity survey suggests the U.S. economy is keeping resilient in the face of the Fed’s aggressive rate hikes.

That creates at least some room for the central bank to lift rates further to tame inflation which was still at 5.0% in March. It’s significant because the world’s largest cryptocurrency performed poorly last year amidst rising interest rates.

Nonetheless, there’s reason to not read too much into the drop in BTC today, including the recent bank failures that could make the Federal Reserve revisit its hawkish stance. According to FxPro analyst Alex Kuptsikevich:

Technically, bitcoin has already proven the end of the bear market by securing above key moving averages and steadily retreating from the bottom.

The post Why did bitcoin mining stocks end down on Monday? appeared first on CoinJournal.

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Bitcoin price prediction: Analyst says BTC is poised for a retest of $28,800

  • Bitcoin price has dropped below $30,000 to currently trade near $29,480.
  • Crypto analyst Rekt Capital says BTC price could retest $28,800 and establish it as a major support area.
  • BTC price bounced above $31,000 last week, having struggled to break past the anticipated buffer zone.

Bitcoin is trading around $29,479, about 3% down in the past 24 hours and now just 4% up in the past seven days. After trading to highs above $3,100 and then retreating to current levels, the market might have to brace for a retest of $28,800.

That’s today’s Bitcoin price prediction as shared by crypto analyst Rekt Capital.  

Bitcoin price at key area, with possible dip to $28,800

Following a retracement to lows of $15,500 in the aftermath of the FTX debacle market rout, Bitcoin price saw a decent flip in 2023. An upswing off the post-death cross retracement of the bear market saw BTC recover more than 80%.

According to Rekt Capital, the rally to $30,000 area had BTC trending at an area that has previously acted as a stubborn resistance as well as support zone on the monthly chart. Bulls managed to breach the supply wall last week, but the $28,800 was equally resolute and despite a decent weekly close above the zone, a fresh dip to the level is likely.

Such a retest might be what buyers need to solidify it as a demand reload area. Rekt says a successful retest of the level could reenergize bulls for another upward move.

The post Bitcoin price prediction: Analyst says BTC is poised for a retest of $28,800 appeared first on CoinJournal.

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CME to expand Bitcoin and Ether options expiries in May

  • CME group says demand from clients has increased amid the heightened market volatility.
  • The marketplace plans to expand expiries for its standard and micro-sized BTC and Ether options contracts.
  • Approval would see the derivatives platform make the changes on 22 May, 2023.

Derivatives marketplace CME Group is seeking to expand its options expiries for Bitcoin and Ethereum, according to an announcement published today, 17 April 2023.

The platform, which says the plans are subject to regulatory approval, indicates that the plan is to have its suite of crypto options for BTC and ETH contracts expiries be available every business week day – Monday to Friday.

Currently, expiries for micro-sized options on the two crypto futures are available on Monday, Wednesday and Friday. The CME also offers monthly and quarterly expiries for BTC and ETH options on its futures contracts.

If approved, the company will look to have the new expiries available beginning 22 May.

Client demand for BTC and ETH products

Giovanni Vicioso, CME Group Global Head of Cryptocurrency Products said the goal is to have market participants access options contracts that offer “greater precision and versatility” for managing short-term Bitcoin and Ethereum price risk.

“Against a backdrop of heightened market volatility in the digital asset sector, we continue to see clients turn to a trusted, regulated venue like CME Group for reliable and efficient cryptocurrency risk management products,” Vicioso added.

CME Group has seen an increase in demand for Bitcoin and Ethereum futures and options. The top two assets by market cap are also the two best cryptocurrencies for crypto derivatives trading. 

The bitcoin’s numbers in Q1, 2023 for CME achieved a notional of over $3 billion, a record in terms of daily average. The marketplace also saw a record BTC options contracts of 2,357 traded on 22 March 22. Open interest rose to an all-time high of 14,700 contracts on 31 March and could soar further amid a long-term bullish Bitcoin price prediction, particularly going into the next halving.

The all-time high for Ether options contracts was 311 on 22 February, while OI hit a record 1,800 contracts on 24 March.

The post CME to expand Bitcoin and Ether options expiries in May appeared first on CoinJournal.