- Bitcoin maintains stability above $70K while Ether trades around $3600, with options volatility remaining high ahead of the halving event, and perpetual futures funding rates staying inflated.
- Positive inflows into Bitcoin ETFs signal market optimism, while traders prepare for potential turbulence amidst the calm before the halving storm.
The cryptocurrency market is exhibiting a sense of tranquility as Bitcoin maintains its position above the $70,000 mark, while Ether showcases resilience above $3,600. With the highly anticipated Bitcoin halving event looming ahead, market players are observing with cautious optimism amid signs of stability and potential volatility.
Bitcoin (BTC) and Ether (ETH) embarked on the trading week with a subdued tone, reflecting the closure of major financial centers for the extended Easter weekend. As of the latest data from CoinDesk Indices, Bitcoin remains steadfast at $70,000, while Ether hovers near $3,600. The CoinDesk 20 (CD20), representing the most significant and liquid digital assets, displays a 1.9% uptick, trading at 2,750.
Options Volatility and Perpetual Futures
Jun-Young Heo, a derivatives trader at Presto Labs in Singapore, highlights the relatively placid movement of BTC and ETH last week compared to the preceding tumultuous weeks in March. He notes that while weekly realized volatility dipped below 50%, the implied volatility of front-month options remains elevated, surpassing 75%, ahead of the imminent Bitcoin halving event slated around April 20.
Moreover, Heo underscores the persistent inflation of funding rates, with major exchanges recording funding rates between 6bps to 8bps for large-cap perpetual futures contracts. The global open interest for BTC and ETH perpetual futures concurrently reaches a staggering $35 billion, indicating sustained interest and activity in the derivatives market.
Positive Inflows and Market Sentiment
In a recent telegram note, QCP Capital highlights Bitcoin’s rally leading up to the long weekend, attributing it to substantial inflows into Bitcoin ETFs. On March 27, Bitcoin ETFs witnessed an influx of $243.5 million, followed by an additional $182 million on March 28, according to data from Coinglass. This influx of institutional capital underscores growing confidence and interest in the cryptocurrency market.
The Calm Before the Halving Storm
As the cryptocurrency market basks in a period of relative tranquility, investors and traders brace themselves for potential turbulence with the impending Bitcoin halving event. While stability persists in current prices, heightened options volatility and inflated perpetual futures funding rates serve as a reminder of the market’s susceptibility to swift changes. Amidst this backdrop, positive inflows into Bitcoin ETFs signal a strengthening investor sentiment, contributing to the prevailing optimism surrounding digital assets.
