The price of Bitcoin continues to rise, with a little help from the US Federal Reserve, as ether traders hedge in the options market.
- Bitcoin (BTC) is trading around $ 10,979 at 8:00 p.m. UTC (4:00 p.m. ET). Earn 2% in the last 24 hours.
- 24 Hour Bitcoin Range: $ 10,662 – $ 11,099
- BTC above its 10 and 50 day moving averages, a bullish signal for market technicians.
Bitcoin hit $ 11,099 on exchanges such as Coinbase on Wednesday after the U.S. Federal Reserve announced it was keeping interest rates near zero until peak employment is reached. The price, however, has lost momentum to $ 10,979 at the time of publication.
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“Buyers have already reached $ 11,000 per BTC. We expect an increase to $ 11,200 and then a test of $ 11,500, ”said Constantine Kogan, partner of crypto fund of funds BitBull Capital.
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However, at least one stakeholder remains suspicious until there is more buying volume in the bitcoin market. “Personally, I think we need to see significant buying volume above $ 12,000 to really shake things up, otherwise I would tend to expect further consolidation over the next few weeks,” said Neil Van Huis, director of institutional trading at liquidity provider Blockfills. The last time bitcoin hit $ 12,000 was on September 1.
Bitcoin mining could play a role in short-term market movements, Van Huis added. “If the prices of BTC are higher, miners could seek to profit from it by selling to raise cash,” he said. The mining difficulty adjustment, scheduled for September 19, is expected to increase since hashing power hit record highs this week. This means that old mining machines will be replaced by newer models so that some operations are competitive.
“Miners would basically speculate on whether it would be more profitable to just let their bitcoin holdings roll around because they can’t access the equipment, or sell BTC to raise money for the equipment. operates more efficiently in the future, ”added Van Huis.
Italian OTC trader Alessandro Andreotti pointed to the amount of bitcoin stuck in decentralized finance, which crossed the 100,000 BTC mark this week, as a bullish sign for the world’s oldest cryptocurrency. “I think this is an important step for decentralized finance as a whole, which shows its potential and the number of investors who believe in it,” Andreotti said. “These are exciting times.”
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Ether options bet below $ 400
Ether (ETH), the second largest cryptocurrency by market cap, was up around $ 365 on Wednesday and up 0.28% in 24 hours at 8:00 p.m. UTC (4:00 p.m. ET).
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Ether options traders remain biased in favor of spot prices below $ 400. While 36% expect the ether to exceed $ 380, only 22% of options bets expect the ether to exceed $ 400 next week when the September 25 expires.
William Purdy, options trader and founder of analytics firm PurdyAlerts, said aether’s implied volatility, the forecast of its price movements, was greater than realized volatility, a measure of price movements relative to past behavior, since July. Since option prices are based on implied volatility, he sees an opportunity to sell ether options.
“The price of implied volatility is higher than historical volatility as ether investors seek downside price protection against future unfortunate events,” said Purdy. “This cost of protection is often overestimated by the market and can be exploited by selling options.”
Digital assets on CoinDesk 20 are mixed, mostly in Red Wednesday. Notable Winners at 8:00 p.m. UTC (4:00 p.m. ET):
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Notable losers at 8 p.m. UTC (4 p.m. ET):
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- Oil is up 4.4%. Price per barrel of West Texas Intermediate crude: $ 40.09
- Gold was in the green 0.27% and at $ 1,958 at time of publication.
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- Yields on US Treasuries were mixed on Wednesday. Yields, which move in the opposite direction to price, fell the most on the two-year bond, in the red of 8%.
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