Bitcoin continues its rally this week following Sunday’s crash. The ether options marketplace indicates a roller coaster journey forward for the world’s second biggest cryptocurrency.
It’s been a positive week for bitcoin up to now. The world’s earliest cryptocurrency is continuing its own rally in the Sunday price crash, enjoying 12% on a bullish run that isn’t displaying signs of slowing down.
“Bitcoin reached above $12,000 on Aug. 2, but its ascension was stopped short,” stated Jean-Baptiste Pavageau, a spouse at quantitative trading company ExoAlpha. “However, the impact on bitcoin was short-lived, and a breakout above $12,500 on high volume would definitely put BTC on the way.”
For Pavageau, background may never replicate but it will often matter. “If one looks at how the price of bitcoin moved after the second halving in 2016, the path taken so far is highly similar: A sideways period of six to eight weeks post-halving, followed by a run-up and a correction before heading to all-time highs a few months later.”
Henrik Kueglberg, a Sweden-based over-the-counter bitcoin dealer, states the grim realities of the international market continue to create the case for investment in cryptocurrencies during the upcoming few months also. “Let’s get real. Stocks will fall and interest rates will be kept low. I expect another bitcoin all-time high in September and increasing prices all through Q4.”
Ether, the second-largest cryptocurrency by market capitalization (ETH), was down Thursday trading about $397 and falling 0.45% in 24 hours as of 20:00 UTC (4:00 p.m. ET).
The ether options market is on a complete tear and seeing substantial amounts of stakes. Open interest is currently approaching $400 million. The majority of it’s on Netherlands-based stage Deribit, which leads the way with $351 million, based on data in aggregator Skew. Alternatives give owners into the right, although not the obligation, to purchase or sell an underlying asset.
“Open interest is now 2.5 times higher than it was just a few weeks ago, touching a new record,” noted Chris Thomas, head of electronic assets for agent Swissquote.
“There’s almost zero real institutional volume through these exchanges,” stated Thomas. He indicated those with ether choices are high-net-worth people or little cryptocurrency capital preparing for greater ETH volatility. “The options market has now caught up with the underlying (ether) and is anticipating further moves in the near future as implied volatility is now greater than realized volatility,” he included.
When implied volatility is significantly higher than realized volatility, it normally suggests that the market anticipates increased price changes are beforehand.
Digital resources on the Fintech Zoom 20 are blended Thursday. Notable winners as of 20:00 UTC (4:00 p.m. ET):
Notable winners as of 20:00 UTC (4:00 p.m. ET):
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