Bitcoin and other cryptocurrencies steadied after registering one of the biggest price dumps since the pandemic. Before the dump, bitcoin went up as high as $19.1K in spot markets and 19.53K in Perpetual markets. The difference in the spot and futures markets price suggests overleveraged long positions liquidated in a matter of minutes resulting in bitcoin falling by around $3,000.
By the weekend bitcoin had stabilized and is now trading at $18,700+ price levels. The asset remains bullish and we expect a steady increment in its value for this week.
Bitcoin is registering high trading volumes as other crypto assets, implying a strong momentum in its price move and experts are bullish even after the price decline.
Bitcoin NVT Signal has recovered and is well above the pre-pandemic levels. It is approaching the levels of December 2017.
Around $1.3B worth of options expired this week, and while traders are bullish on call options, now would be a good time to buy December puts or short calls to hedge your portfolios.
DeFi is now valued at $1B less than last Monday due to bitcoin’s price decline. We expect it to recover with the crypto markets.
Market volatility in the USA is back to the levels it was in February which is usually bullish. The CBOE volatility index is at 21.5, about 8 points above what it was in February.
Traders are happy about the coming coronavirus vaccine and with the US elections now over, markets expect businesses to run as they did before the pandemic.
Bloomberg reports that India has fallen into a technical recession as its GDP contracted 7.5% in the second quarter of FY 2020–2021. In the previous quarter, the Indian GDP contracted about 23.9%. Although the total output is nearly back to the pre-pandemic levels, the service sector remains in peril and the growth of the Indian economy is forecasted to start only by the end of 2022.