Cryptocurrency markets consolidated on Bitcoin on Tuesday and ether They are trading at $105,000 and $3,550, respectively.
Traders are watching to see if prices will form a new high, indicating a downtrend, or continue rising.
A bearish scenario would be confirmed if Bitcoin fell below $98,000, while a bullish outlook would be indicated if it rose above the November 2 high of $111,000.
Recent volatility in the crypto market has been driven by a strong dollar, with the DXY index rising from 96.2 on September 18 to 99.58 as the Federal Reserve’s indecisive comments provide little guidance on lowering US interest rates.
Positioning of derivatives
Written by Omkar Godbole
- The 30-day implied volatility (IV) index for BTC and ETH remains within its recent range, consistent with Wall Street’s VIX index, which erased October’s spike, suggesting continued market calm.
- Still, the golden cross on BTC’s IV suggests that the path of least resistance for volatility is on the higher side.
- On Deribit, both BTC and ETH puts continue to be more expensive than calls on the front end. However, the demand for downside protection for BTC is stronger than for ETH.
- The blockflow paradigm around the OTC desk featured demand for a long position in BTC expiring on November 29th with a strike price of $80,000 and a call expiring on November 21st with a strike price of $110,000.
- In the futures market, open interest (OI) on the UNI contract surged 80% in 24 hours, indicating increased participation in price appreciation by leveraged traders. XRP’s OI increased by 5%, while it decreased for most of the top 10 currencies, including BTC and ETH.
- On CME, Ether futures OI plummeted to 2.1 million ETH.
token talk
Written by Oliver Knight
- The altcoin market cooled down on Tuesday, capping a weekend rally that dragged into Monday after US President Donald Trump announced a $2,000 dividend to some Americans.
- Uniswap’s native UNI token has outperformed the broader market after a proposal was made to burn millions of tokens, theoretically reducing supply and inflating prices. UNI rose more than 20% after the proposal was announced before the merger.
- Those trading the newly released Canton Network (CC) token did not have a similar optimistic view. Despite being backed by TradFi giants such as Goldman Sachs (GS), HSBC (HSBC), and Broadridge (BR), the token fell 33% on its debut.
- According to CoinMarketCap, it currently trades with a market capitalization of $3.8 billion, despite a 24-hour trading volume of only $55 million.
- Canton Network, promoted as a layer-1 blockchain for institutions, saw more than 500,000 daily transactions in September, according to data provided by cryptocurrency management company Copper.
- The sluggish debut mirrors the bearish start for Plasma’s XPL token in October. After one month of operation, the price dropped from $1.67 to $0.28. XPL has fallen another 11.5% in the past 24 hours.
- The direction of the broader altcoin market is determined by Bitcoin. and ether They can continue to emerge from danger and establish new levels of support. A rejection at these levels would lead to further lower highs forming and confirming the downtrend from the October peak.