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Good morning. Here’s what’s happening:
Prices: At the start of Asia's trading day, Bitcoin experienced a slight increase while Ether witnessed a dip. Market experts foresee a pre-FOMC market correction, highlighting the resilience of digital assets amidst regulatory and debt challenges in the United States.
Insights: The decrease in the bitcoin options put/call ratio indicates that cryptocurrency investors are displaying less concern compared to June when U.S. lawmakers were engaged in a heated debate over raising the country's debt ceiling.
Prices
|
$27,109
+39.7 ▲ 0.1%
|
$1,890
−2.9 ▼ 0.2%
|
1,185
+3.1 ▲ 0.3%
|
|
S&P 500
4,282.37
+61.4 ▲ 1.5%
|
Gold
$1,965
+12.5 ▲ 0.6%
|
Nikkei 225
31,524.22
+376.2 ▲ 1.2%
|
BTC/ETH prices per CoinCryptoUs, as of 7 a.m. ET (11 a.m. UTC)
Bitcoin and Ether Are Still Thriving
As the Asian trading session kicks off, Bitcoin shows a 0.1% increase, reaching $27,109, while Ether experiences a slight decline, settling at $1,890.
Joe DiPasquale, the founder of BitBull Capital, predicts that the primary focus of this week will be on market correction and consolidation, setting the stage for the forthcoming release of the Federal Open Market Committee (FOMC) meeting minutes on June 14th.
“We had been expecting a correction and consolidation between $25K and $27K levels, and that’s what we have been witnessing over the last month,” he told CoinDesk in a note. “While we haven’t had a major test of $30K, another attempt of the key resistance level would not be surprising.”
Mark Connors, head of research at 3iQ, a leading digital asset management firm, observes the remarkable resilience of the digital asset market, even in the face of a hostile regulatory environment in the United States. This thriving market owes its resilience to the ongoing concerns surrounding the unprecedented levels of debt issuance within the country.
“With equity and debt markets wondering how much the U.S. Treasury's renewed debt issuance will impact liquidity and thereby market prices, digital assets are taking matters into their own hands,” he wrote to CoinDesk.
Connors observes that amidst a challenging regulatory landscape in the United States, 2023 has seen Bitcoin's dominance and soaring transaction fees taking center stage. However, Ethereum's post-merge performance has emerged as a captivating narrative, drawing considerable market attention. Notably, the anticipated impact of staking 'unlock' turned out to be unexpectedly insignificant, while staking demand witnessed a substantial surge. Moreover, Ethereum has effectively delivered on its promise of deflationary measures, with over 250,000 ETH being burned, further bolstering its appeal in the market.
“So while the fate of the $500 trillion equity and debt markets hinges on the ability of central banks and treasury departments to provide much-needed liquidity, the bellwether digital assets bitcoin and ether are taking care of business, and the market is responding – even if institutions and regulators are not,” he told CoinDesk.
| Asset | Ticker | Returns | DACS Sector |
|---|---|---|---|
| Terra | LUNA | +11.5% | Smart Contract Platform |
| Decentraland | MANA | +4.4% | Entertainment |
| XRP | XRP | +3.8% | Currency |
| Asset | Ticker | Returns | DACS Sector |
|---|---|---|---|
| Gala | GALA | −1.5% | Entertainment |
| Polygon | MATIC | −0.9% | Smart Contract Platform |
| Polkadot | DOT | −0.8% | Smart Contract Platform |
Insights
Bitcoin Put/Call Ratio Decreases After Recent Debt Agreement
Derivative data indicates a recent decline in a key indicator that tends to surge during periods of pessimistic market sentiment. The current bitcoin options put/call ratio across various exchanges stands at 0.47, marking a significant decrease from the 1.34 recorded at the start of June.
The purchaser of a put option acquires the privilege to sell the asset at a predetermined price, whereas the purchaser of a call option obtains the right to buy the asset. The correlation between these two options can provide insights into investor sentiment, particularly when reaching exceptionally high or low levels.
The volume of purchased put and call options is calculated within the past 24 hours, where values above one indicate a bearish sentiment, while values below one suggest the opposite.
The recent decrease suggests a decrease in the number of traders seeking to buy insurance against potential price drops. The surge in demand for protection towards the end of the previous month was likely driven by apprehensions surrounding the recently negotiated debt deal between Democrats and Republicans.
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Source Coindesk
