Market envelope: Bitcoin Rangebound; Delays crypto stocks
Bitcoin was mostly flat on Friday as buyers and sellers appear to be at a stalemate. The world’s largest cryptocurrency has risen around 6% over the past week and is expected to maintain support above $ 30,000 through the weekend.
In traditional markets, the S&P 500 and Nasdaq hit all-time highs after a better-than-expected US jobs report on Friday. For now, sentiment for risky assets appears to be alive, along with declining volatility in traditional markets and bitcoin.
According to options data provider Skew, Bitcoin’s implied volatility remains high despite rangebound trading since mid-May. This suggests that traders are not complacent given the recent stabilization in prices. There is still some uncertainty in the options market at the start of July.
“$ 34,000 is a key level to accelerate upward or downward movements with the highest gamma exposure for puts and calls,” wrote Pankaj Balani, CEO of Delta Exchange, in an e -mail to CoinDesk.
“While spot trading is declining, the market has yet to find its place,” Balani wrote. “As long as players write upside exposure in size, limited play with more downside risk seems likely.”
Crypto-related stocks such as Coinbase (NASDAQ: COIN) and Riot Blockchain (NASDAQ: RIOT) have outperformed bitcoin in recent months, albeit within a narrow range. Some traders are looking for a breakout or break in stocks as the primary signal for bitcoin in the coming weeks.
COIN recorded a bearish exhaustion signal in June, confirmed by DeMark indicators. The stock will need to break above $ 260 to change the downtrend since its debut in April.
The bitcoin market could be boosted this month by the expiration of restrictions on investors on the sale of shares of the Grayscale Bitcoin Trust (GBTC), the world’s largest cryptocurrency fund. Grayscale is owned by the Digital Currency Group, which is also the parent company of CoinDesk.
Some analysts and digital asset investors claim that some of these investors may need to enter the market to buy bitcoin in order to repay the cryptocurrency loans they used to fund their initial purchases. GBTC shares.
Most digital assets on CoinDesk 20 ended up going down on Friday.
Notable Winners at 9:00 p.m. UTC (4:00 p.m. ET):