Bitcoin (Bitcoin) After the bulls failed to try to regain the $40,000 level, today the price fell again to $37,365. Due to Fed Chairman Jerome Powell’s comments on future interest rate hikes and concerns about rising inflation, the stock market and commodity prices fell, leading to another drop. Bitcoin and gold pdeclines.
Data from Cointelegraph Markets Pro with Transaction view It shows that the price of BTC climbed from $38,200 in early trading hours on Thursday to a high of over $39,500 above midday, and then fell to a low of $37,365 as the bears control the market.
Increase in funds flowing into spot exchanges
A signal provided before the fall in Bitcoin prices on June 17 was an increase in capital inflows from spot exchanges, which led some analysts to speculate that traders who failed to cash out near the highs were using lower highs to lock in gains.
#Bitcoin Here, you can see a comparison between the funds that have recently flown into spot exchanges and derivatives exchanges. Recently, the spot market has increased substantially. One theory is that spot holders who have not sold highs are taking advantage of opportunities to sell at lower highs. pic.twitter.com/6SOI2uXHk8
-Tempting beef (@tempting_beef) June 17, 2021
As the sell-off intensified, the net flow of BTC into exchanges appeared Show The rise and this selling pressure, combined with the lack of bargain hunting, kept Bitcoin below $38,000.
Although the recent inflow of BTC into exchanges indicates that the short-term outlook is bearish, it is also worth noting that whale wallets holding 100 BTC to 10,000 BTC have actually Increase holdings by 90,000 BTC The past 25 days indicate a more optimistic long-term outlook.
BTC options holdings are rising
Another source to better understand how funds are deployed in the market is to look at the open positions of Bitcoin and Ethereum (Ethereum) Option.
Delphi Digital stated that “the open interest of BTC and ETH options has been declining since mid-May”, but the open interest of BTC options has increased slightly recently. The number of Ethereum has been stagnant, “This shows that traders are trying to prepare for the trend of Bitcoin.”
Delphi Digital also stated that the recent price movements of Bitcoin and gold have reignited discussions about their ability to operate as “safe haven assets”. Investors are increasingly viewing gold as a major inflation hedge, which means “inflation” The rise may have a negative impact on BTC”. mood. “
Given that these two assets have reacted negatively to Powell’s comments, the correlation between BTC and gold in 2019 may lead to the reappearance of the argument that BTC has evolved into a safe-haven asset.
Altcoins lose momentum
Due to the lack of optimism that severely affected most tokens, the entire altcoin market showed a downward trend on June 17.
Notable exceptions to market stagnation include XinFin Network (XDC), which grew by 34% after the partnership with Flare Finance, and NuCyper (NU), which grew by 32%, the latter benefiting from the recent merger with the Keep project to form Keanu DAO.
As shown in the figure below, the announced merger of NuCyper and Keep is used by the NewsQuake™ service from Cointelegraph Markets Pro After June 15th, the VORTECS™ score rose to a high of 74 on June 16, approximately 15 hours before the altcoin rose by 44%.
The overall cryptocurrency market value is now $1.568 trillion, and Bitcoin’s dominance rate is 45.1%.
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