Welcome to another edition of Qume Market Mondays
Crypto markets have been bearish for most of the week with a price recovery registered on weekend and today as Institutions move into the crypto markets.
Bitcoin fell to the $43,000 price mark mid-week and bounced back to $47,000 price levels over the weekend. The asset is currently trading at a $48,171 price in the futures perpetual markets. Many investors saw the price dip as an opportunity to buy the asset at lower rates and it seems the price recovery is riding on this remark. Traders should expect some volatility this week as buyers as expectations of bitcoin hitting the $50,000 mark continue to be strengthened looking at the bitcoin chart.
Put to calls ratio of bitcoin options has declined over the weekend suggesting that during the dip traders have increased their exposure to the bullish market since bitcoin may soon touch $50,000.
Energy threat to Bitcoin?
Bitcoin mining is an energy-intensive task and BCA research released earlier shows that this nature of bitcoin poses a great threat to the price of bitcoin. It went further to say that Bitcoin will fail as a medium of exchanges in words similar to that of Nassim Nicholas Taleb who earlier blew on Twitter about the asset’s high short-term volatility. The report also suggested that the US will likely ban bitcoin soon. However, it seems unlikely at this point when Coinbase is soon to get its direct listing clearance from SEC and Tesla has invested $1.5bn in bitcoin.