The best-performing stock during the previous day is Terra Luna Classic (LUNC), which is up around 15%. While Bitcoin is targeted towards $17K, Ripple’s XRP also increased by almost 5%.
The cryptocurrency market has been pretty quiet over the last day, which was maybe to be anticipated considering the holiday season. The daily trade volume is declining, which is another indicator of this. Some cryptocurrencies did, however, manage to record large increases.
At $17,000, Bitcoin
At this moment, the price of bitcoin is fluctuating more or less than it did yesterday. The cryptocurrency seems to be tightly consolidating below the significant resistance mark of $17K.
According to data from CoinGecko, BTC’s dominance is still growing, although slowly. This is the most popular method of determining its expanding market share in relation to the rest of the market and also indicates that altcoins are struggling to keep up.
LUNC is up 14% while ripple is up 5%.
With a few minor outliers, the bulk of the altcoin market remained quite tranquil.
Ripple’s XRP, which was in the top 10, had the best performance. It managed to rise significantly in the last 24 hours by 5.6% and is now trading at about $0.37.
Charts for ETH, BNB, DOGE, Cardano, and Polygon all show little variations; nothing too significant.
Terra Luna Classic (LUNC), which is ranked in the top 100 coins by total market cap, has performed best elsewhere, rising about 15% over the previous day. QNT and LDO are also seeing 8%+ growth that are noteworthy.
The poorest performance today is Chain’s XCN, which is down 5% on the opposite end of the spectrum. 3.5% less NEXO was sold.
Bitcoin takes liquidity near $17K as US dollar shows weakness pre-CPI
With one week before the release of the US inflation report, BTC price movement is aiming towards $17,000 despite gradually rising volatility.
At the opening of Wall Street on December 8, Bitcoin fluctuated between $17,000 and $17,000 as the US dollar threatened to weaken even lower.
Dollar falls while equities somewhat rise.
Data from Coin telegraph Markets Pro and Trading View indicated that the BTC/USD exchange rate has almost remained unchanged over the previous 24 hours.
Analysts anticipated a probable collapse in the U.S. dollar’s strength as the next volatility driver for cryptocurrencies and risky assets since macro indicators were absent.
The U.S. dollar index (DXY), which repeatedly fell below 105 throughout the day, was poised to test multi-day support.
Joe Cariasare, co-host of the Inside Bitcoin podcast, highlighted that this was “$DXY’s first dip under the 100 day MA since June of ’21.”
Bitcoin options data shows bulls aiming for $17K BTC price by Friday’s expiry
In the options expiration on December 9, BTC bulls might make $130 million, while bears want to maintain the balance by maintaining the price of Bitcoin below $17,000.
On November 21, the price of bitcoin plunged below $15,500, marking the currency’s lowest point in two years. The two-day correction resulted in an 8% downward trend and destroyed leveraged long (buy) futures contracts worth $230 million.
The market movement misled bears into believing that a sub-$15,500 expiration on the options expiry on December 9 was possible, but these wagers are unlikely to succeed as the deadline draws near.
Although the price of the most popular cryptocurrency, Bitcoin, has fallen by 65% year-to-date for 2022, it still ranks in the top 30 worldwide tradable asset classes, ahead of companies like Meta Platforms (META), Samsung (005930.KS), and Coca-Cola (KO).
The potential of a recession if the U.S. Federal Reserve hikes rates for longer than anticipated continues to be investors’ top worry. This is shown by statistics from December 2 that revealed 263,000 new jobs were generated in November, indicating that the Federal Reserve’s efforts to slow the economy and lower inflation are still in their early stages.
In a message to customers dated December 7, Wells Fargo director Azhar Iqbal said that “all things considered, financial signs point to a recession on the horizon.” Iqbal said, “Markets are definitely bracing for a recession in 2023, when taken combined with the inverted yield curve.”
Bears will pay for their unduly negative attitude.
Although there is $320 million in open interest for the Dec. 9 options expiration, the real amount will be less since bearish were anticipating price levels around $15,500. After Bitcoin traded below $16,000 on November 22, some traders grew overconfident.
The $175 million call (buy) open interest and the $145 million put (sell) open interest are inequitable, as shown by the 1.19 call-to-put ratio. Since Bitcoin is now trading around $16,900, most pessimistic bets are expected to lose all of their value.
Only $16 million worth of these put (sell) options will be offered if Bitcoin’s price is still around $17,000 by 8:00 AM UTC on December 9. This discrepancy arises from the fact that if BTC moves above that price at expiration, the right to sell Bitcoin for $16,500 or $15,500 is meaningless.
Bulls want to make $130 million, so they shoot for $18,000.
Based on the price movement right now, the four most probable outcomes are shown below. Depending on the expiration price, there are different numbers of options contracts for call (bull) and put (bear) instruments available on December 9. The potential profit is the difference that favors either side:
- 200 calls vs 2,100 puts between $15,500 and $16,500. The overall outcome is $30 million in favor of the put (bear) instruments.
- There are 1,700 calls and 1,500 puts between $16,500 and $17,000. Overall, there is an equal distribution of bears and bulls.
- In the $17,000–$18,000 range, there were 5,500 calls and 100 puts. The net outcome is $100 million in favor of the call (bull) instruments.
- 7,300 calls against 0 puts between $18,000 and $18,500. Bulls totally control the expiration, earning $130 million in profit.
This rough estimate takes into account just the call options in neutral to bullish transactions and the put options in bearish bets. However, this simplicity ignores more sophisticated investing techniques.