Bitcoin’s price experienced a significant surge, surpassing $27,000 on Thursday. This increase was accompanied by a 3.8% rise in the Market Index (CMI), which evaluates the performance of various cryptocurrencies. The DeFi Index (DCF) led the pack with a 5.5% gain. Top DeFi lending platforms Compound, Aave, and Maker saw their respective tokens, COMP, AAVE, and MKR, enjoy gains of 21%, 10%, and 5%. Additionally, Ethereum scaling network Arbitrum’s ARB rallied by 9.6%. The upward trend in the crypto market coincided with a modest rebound in US stocks, a drop in the 10-year Treasury yield, oil prices, and the US dollar.
Ether (ETH) outperforms Bitcoin
Ether (ETH) gained 4.8%, reaching $1,660, and outperforming Bitcoin. Investors’ hopes for a potential US regulatory green light for a futures-based exchange-traded fund (ETF) contributed to the boost in ETH’s price. Bloomberg analyst Eric Balchunas reported that the US Securities and Exchange Commission (SEC) requested ETF filers to update their applications for approval and trading commencement next week, due to an impending government shutdown. VanEck submitted paperwork for its futures-based ETH ETF, joining already submitted filings from Grayscale, ProShares, and Bitwise, among others.
Crypto derivatives traders brace for options expiry
On Friday, crypto derivatives traders are preparing for the quarterly and monthly options expiry. Approximately $4.8 billion worth of BTC and ETH options will expire on the key derivatives exchange Deribit. Institutional crypto exchange FalconX noted that most of the outstanding contracts on Deribit are at the $27,000 level for Bitcoin, almost evenly split between calls and puts. This even split suggests that options traders do not have a clear opinion on the short-term direction of the price.
Bitcoin’s price range and potential outcomes
Julius de Kempenaer, senior technical analyst at Stockcharts.com, stated that Bitcoin is currently ranging between $25,000 and $31,000. After testing the lower threshold earlier this month, it might be headed towards the upper bound. If Bitcoin remains suppressed and under the $31,000-$32,000 barrier, it becomes stronger and more challenging to break. However, if Bitcoin breaks decisively below $25,000, it could fall to the next support level at $17,000-$18,000.
In conclusion, the recent surge in Bitcoin’s price, along with gains in the Market Index (CMI) and DeFi Index (DCF), showcases the ongoing growth and interest in the cryptocurrency market. Ether (ETH) outperformed Bitcoin, driven by investors’ hopes for a potential US regulatory green light for a futures-based exchange-traded fund (ETF). As crypto derivatives traders prepare for the upcoming options expiry, the even split between calls and puts indicates uncertainty about the short-term future of Bitcoin’s price. With Bitcoin currently ranging between $25,000 and $31,000, the next few weeks will be crucial in determining its direction.
